Solution-Required rate of return on the stock

Required rate of return on the stock

Reference no: EM131318381

Comet Pasta Company stock currenly sells for $137.50 per share. The Company JUST PAID a dividend and that dividend is not expected to grow at all for the next two years, and then it will grow at a constant rate of 10 percent thereafter. What was the amount of the dividend that was just paid if the required rate of return on the stock is 20 percent?

Reference no: EM131318381

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Required rate of return on the stock

Reference no: EM131318381

Reference no: EM131318381

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