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What rate of growth is expected from treasury bonds

Dexter, Inc., has just paid a dividend of $2.00. Its stock is now selling for $48 per share. The firm is half as volatile as the market. The expected return on the market is 14% and the yield on U.S. Treasury bonds is 11%. If the market is in equilibrium, what rate of growth is expected?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate of growth is expected from treasury bonds

Reference No:- TGS0552574

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Find the price of the company-s stock in three years

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate of growth is expected from treasury bonds

Reference No:- TGS0552574

Recent Questions Asked Finance Basics

Q : Find the price of the company-s stock in three years

Q : Black-scholes option pricing model

Q : Michael porter concept of corporate shared value

Q : Determine ibm-s growth if return on investment is given

Q : What rate of growth is expected from treasury bonds

Q : Describe the potential risk of discomfort

Q : Calculate the expected capital gains yield

Q : What growth rate cause common stock price remain unchanged

Q : Decisions and allocating resource

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