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    topman's Avatar
    topman Posts: 1, Reputation: 1
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    #1

    May 8, 2007, 10:10 AM
    Common stock and dividend
    1) An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the market's rate of return is 16?

    a. 25.01
    b. 46.88
    c. 50.63
    d. none of the above

    I have many more questions that I need answered by this weekend. I am willing to pay $ for this. Email me so we can discuss price.
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
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    #2

    May 8, 2007, 11:34 PM
    Your looking for help with homework. If people here do your homework for you, what will you be doing while they are doing your homework? Also, what will you have learned concerning the subjects that you are studying if others do your homework for you?

    I would suggest not defeating the purpose as to why you are in school.

    Please see the following site for more information.

    https://www.askmehelpdesk.com/math-s...board-b-u.html
    bunnyKutty's Avatar
    bunnyKutty Posts: 60, Reputation: 5
    Junior Member
    		  
    #3

    May 21, 2007, 08:51 PM
    COST OF EQUITY ke = D1/P0 + g
    16% =3.75/P0 + 8%
    P0 = 3.75/(16% - 8%)
    Pric of equity = $ 46.88
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