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Compute the required rate of return on Johnstown Supply Corp

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Question - Johnstown Supply Corp. stock is currently selling for $58.00. It is expected to pay a dividend of $5.00 at the end of the year. Dividends are expected to grow at a constant rate of 7.50% indefinitely. Compute the required rate of return on Johnstown Supply Corp. stock.

Reference no: EM132525945

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