Outstanding common stock is currently selling in the market

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Wayne's Inc.'s outstanding common stock is currently selling in the market for $37. Dividends of $3.43 per share were paid last year, return on equity is 25 perfect, and its retention rate is 28 percent. a. What is the value of the stock to you, given a required rate of return of 16 percent? b. Should you purchase this stock?

Reference no: EM131010535

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