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Only rules of thumb in making RE investment decisions

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Reference no: EM132053093

1. The Rich Company has a dividend growth rate of 14%, a current share price of $56.00, and a current dividend of $1.50. What is the required rate of return for Rich Company shares?

2. Briefly discuss the most common mistakes managers make and how they affect economic profit. Support your points with facts from the readings.

3. What are the shortcomings of using only rules of thumb in making RE investment decisions?

Reference no: EM132053093

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