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solina solina
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6 years ago
You are evaluating the purchase of Cool Toys, Inc. common stock that just paid a dividend of $1.80. You expect the dividend to grow at a rate of 12%, indefinitely. You estimate that a required rate of return of 17.5% will be adequate compensation for this investment. Assuming that your analysis is correct, what is the most that you would be willing to pay for the common stock if you were to purchase it today? Round to the nearest $.01.
A) $36.65
B) $91.23
C) $51.55
D) $74.82
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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Heavy Heart Thank you bio-forums! Heavy Heart
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vanrheevanrhee
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solina Author
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#2
6 years ago
Simple and easy, thank u
Heavy Heart Thank you bio-forums! Heavy Heart
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#3
4 years ago
Thank you.
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