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Your initial post is due by Wed. at 11:59 pm and should be ~250- 300 words. Reply (~100-150 words) to one classmate's post by Sat.
Your initial post is due by Wed. at 11:59 pm and should be ~250-
300 words. Reply (~100-150 words) to one classmate's post by
Sat. at 11:59 pm.
Part 1:
Discuss the benefits and issues related to stock ownership
as an investment type. What are the issues related to equity
as a source of additional funds, and valuation concepts?
Part 2:
Stock ABC is expected to pay dividends
of $1.20 and $1.50, respectively in one and two years. After
that, ABC is entering a constant growth stage, after which
ABC is expected to grow with the constant growth rate
of 4%. If the required rate of return on ABC is 12% what is
the price of ABC? Explain fully! Show your work!
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