Question: a. The current dividend for Birmingham Electric is $2.40 and is growing at 5% annually. If the required return is 13%, what is the value

a. The current dividend for Birmingham Electric is $2.40 and is growing at 5% annually. If the required return is 13%, what is the value of one share of stock?

b. Montgomery Audio is expected to pay a $1.30 dividend next year. The dividend is expected to grow at 6% annually. If the current stock price is $21.25, what is Montgomery’s required return?



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