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Calculate the required rate of return on ppi common stock

Question: Pablo's Pizza International Inc.'s common stock currently sells for $20 per share. The stock has just paid an annual dividend of $1.00 (D0 = $1.00). The dividend is expected to grow at a constant rate of 10% per year. (Pr. 10-3)

a. Calculate the stock price expected 1 year from now.

b. Calculate the required rate of return on PPI's common stock.

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Finance Basics: Calculate the required rate of return on ppi common stock

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Finance Basics: Calculate the required rate of return on ppi common stock

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