How much would each be willing to pay for the stock

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Reference no: EM132151928

If John, Paul, and George each want the same stock, who will end up with the stock if their required returns are 5%, 7%, and 8% respectively?

Now, suppose the stock pays a dividend of $10/share and are expected to grow by 2% annually. How much would each be willing to pay for the stock and how much will it ultimately cost?

Reference no: EM132151928

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