Common stock valuation, Mary Lee, a Harvard graduate with

Common stock valuation

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Reference no: EM1359639

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

Reference no: EM1359639

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