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Stock Valuation

McCracken Roofing, Inc., common stock paid a dividend of $1.20 per share last year. The company expects earnings and dividends to grow at a rate of 5% per year for the foreseeable future.

1. What required rate of return for this stock would result in a price per share of $28?
2. If McCracken expects b…

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Stock Valuation

Thirsty Cactus Corp. just paid a dividend of $2.20 per share. The dividends are expected to grow at 25 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If therequiredreturnis 14 percent, what is the price of the stock today?

We are always aiming to provide top quality academic writing services that will surely enable you achieve your desired academic grades. Our support is round the clock!

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