Estimated value of a share of common stock

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You are offered a contract with a signing bonus. If they offered you either $215,000 in cash or $2,000 a month for 15 years, guaranteed, which do you take (based strictly on the math)? Your safe rate of return is 7.5%.

and

Hurricane Corporation expects to grow its dividend by 5% per year. The current dividend is $2 per share. The required return is 8%.

-What is the estimated value of a share of common stock?

-If price is $40 and dividends were $1.50 per share but expected to grow at 4% per year, what would be the required rate of return?

Reference no: EM133074419

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