Mary Merry, a graduate with Invest Inc. of Springfield, is trying to sell you a stock with a current market price of $25.00. The stock s last dividend (D) was $2.00 and earnings and dividends are expected to grow at a constant growth rate of 10%. If your required rate of return is 20%, should you buy or not buy this stock? Why?

Mary Merry, a graduate with Invest Inc. of Springfield, is trying to sell you a stock with a current market price of $25.00. The stock s last dividend (D) was $2.00 and earnings and dividends are expected to grow at a constant growth rate of 10%. If your required rate of return is 20%, should you buy or not buy this stock? Why?








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