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Money tree investment fund

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The Money Tree Investment Fund is considering adding a new $30 million investment, White Inc. shares, to the list in Part 1. White Inc. has just paid a dividend, D0, of $1.50 per share, with an expected constant growth rate of 2%. Currently the market price is $88.00 per share. The firm's stock is twice as volatile as the market. The average market return is 8% and the yield on government securities is 3%. What is your recommendation? (Show supporting calculations.)

Reference no: EM133111306

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