5. EB Systems is selling for $11.40 and is expected to pay a $0.40 dividend next...

 

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5. EB Systems is selling for $11.40 and is expected to pay a $0.40 dividend next year. The dividend is expected to grow at 15 percent for the following four years, and then at 7 percent annually after Year 5. If purchased at its current price, what is the expected rate of return on EB Systems? Assume price equals value. 5. EB Systems is selling for $11.40 and is expected to pay a $0.40 dividend next year. The dividend is expected to grow at 15 percent for the following four years, and then at 7 percent annually after Year 5. If purchased at its current price, what is the expected rate of return on EB Systems? Assume price equals value.