Astock has a required rate of return of 10.25%, and it sells for $61.50 per share....

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Question

business finance

Answer 1

Answer #1

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Please find the answer below.

Statement showing computation:

Current price= Expected dividend/(required return-growth)

61.50= Expected dividend/(0.1025-0.06)

61.50= expected dividend/0.0425

Expected dividend= 61.50*0.0425= 2.61375

Expected dividend= 2.61

Answer 2

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