Dividends are anticipated to maintain growth rate

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Reference no: EM132004130

Caan Corporation will pay a $3.01 per share dividend next year. The company pledges to increase its dividend by 2.32 percent per year indefinitely. If you require a return of 10.28 percent on your investment, how much will you pay for the company’s stock today?

The next dividend payment by Halestorm, Inc., will be $8.45 per share. The dividends are anticipated to maintain a growth rate of 4.34 percent forever. If the stock currently sells for $94.06 per share, what is the required return?

Reference no: EM132004130

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