Business
Business, 26.07.2019 04:30, chaeyoung22

P7-9: common stock value: constant growth mccracken roofing inc. common stock paid a dividend of $1.20 per share last year. the company expects earnings and dividends to grow at a rate of 5% per year for the foreseeable future. a. what required rate of return for this stock would result in a price per share of $28? b. if mccracken expects both earnings and dividends to grow at an annual rate of 10%, what required rate of return would result in a price per share of $28?

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