Dividends per share for the Crawford Corporation are expected to grow at

an annual rate of 25 percent for 4 years. After this period of time,

dividends should grow at a normal rate of 5 percent. Crawford's last

dividend was $0.75 per share. If Crawford's current price is $25 per share,

what is its current required rate of return? Should you invest in Crawford's

stock if your required rate of return is 10 percent? Why?

Answer rating: 100% (QA)

To calculate the current required rate of return for Crawford Corporation we can use the dividend discount model DDM The DDM formula is Current Stock ... View the full answer