Current dividend-what is the current value of this stock

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Reference no: EM13921969

The current dividend of Yellow jacket Corporations is $2.80 per share. This dividend is expected to grow at an annual rate of 5 percent per year for the foreseeable future. The required rate of return is 9%.

a) What is the current value of this stock?

b) If the stock sold for $98, what is the rate of return?

Reference no: EM13921969

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