Should gail dribble buy petscan shares or not

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Reference no: EM13206776

Gail Dribble is analyzing the shares of Petscan Radiology. Petscan's stock pays a dividend once each year and it just distributed this year's $0.85 dividend. The market price of the stock is $12.14. Gail estimates that Petscan will increase it dividends by 7 percent per year. After contemplating the risk of Petscan stock, Gail believes that she would be willing to hold the stock only if it provided an annual expected return of at least 13 percent should she buy Petscan shares or not?

Reference no: EM13206776

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