Question: 4 . You are analyzing a stock whose most return annual dividend was $ 3 . 2 0 . Dividends have been growing at an
You are analyzing a stock whose most return annual dividend was $ Dividends have been growing at an annual rate of for several years, and you expect that growth rate to continue. a If your required rate of return on the stock is what is the fair market value of the stock? b If your required rate of return is what is the fair market value of the stock? c What do your answers to parts a and b tell you about the relationship between required rates of return and the fair market value of a stock?
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