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What required rate of return for stock result in price

Company has recently paid annual dividend of Rs.1.50 per common share this year. The Company expects earnings and dividends to grow at a rate of 7% per year for the anticipated future. What required rate of return for this stock would result in a price per share of Rs. 32?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What required rate of return for stock result in price

Reference No:- TGS0673113

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the recognized gain

Q : Find risk free rate of return with required rate of return

Q : Determining the method to evaluate projects

Q : Concept of the democratic deficit

Q : What required rate of return for stock result in price

Q : Question-covalent technologies

Q : Present value of a stream of payments

Q : Systematic risk associated with the returns

Q : Should make investment if estimated cash flows are given

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What required rate of return for stock result in price

Reference No:- TGS0673113

Recent Questions Asked Finance Basics

Q : What is the recognized gain

Q : Find risk free rate of return with required rate of return

Q : Determining the method to evaluate projects

Q : Concept of the democratic deficit

Q : What required rate of return for stock result in price

Q : Question-covalent technologies

Q : Present value of a stream of payments

Q : Systematic risk associated with the returns

Q : Should make investment if estimated cash flows are given

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