Question: Question content area top ( Common stockholder expected return ) Alyward & Bram common stock currently sells for $24.25 per share. The company's executives anticipate

Question content area top

(Common stockholder expected return) Alyward & Bram common stock currently sells for $24.25 per share. The company's executives anticipate a constant growth rate of 10.5 percent and an end-of-year dividend of $1.75.

a. What is your expected rate of return?

b. If you require a return of 16 percent, should you purchase the stock?

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