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Common stock valuelong Constant growth McCracken Roofing Inc common stock paid a dividend of $143 per share last year The company expects earnings and dividends to grow at a rate of

Common stock valuelong -Constant growth McCracken? Roofing, Inc., common stock paid a dividend of ?$1.43 per share last year. The company expects earnings and dividends to grow at a rate of 8?% per year for the foreseeable future. a. What required rate of return for this stock would result in a price per share of ?$22?? b. If McCracken expects both earnings and dividends to grow at an annual rate of 12?%, what required rate of return would result in a price per share of ?$22??

a. The required rate of return for this? stock, in order to result in a price per share of ?$22is $_______?%.

?(Round to two decimal? places.)

 

Apr 23 2020 View more View Less

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