Should the investor purchase the stock and why

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Reference no: EM132733127

Problem (1). Explain why the market value of common stock often differs from its liquidation value or its book value.

Problem (2). A stock offers an expected dividend this year of $3.50, has a required return of 14%, and has historically exhibited a growth rate of 6%. Its current price is $35.00, should the investor purchase this stock? Why?

Reference no: EM132733127

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