Compute the stock expected rate of return

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Question - The common stock of Dalton Corporation paid RM1.35 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years.

(i) If Dalton's current market price is RM24.50 per share compute the stock's expected rate of return?

(ii) If your required rate of return is 10.5 percent, compute the value of the stock for you?

Reference no: EM132969365

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