The growth rate in dividends for suncor energy

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According to the March 16, 2007 issue of The Value Line Investment Survey, the growth rate in dividends for Suncor Energy, Inc for the next five years is expected to be 7 percent. Suppose Suncor Energy meets this growth rate in dividends for the next five years and then the divided growth rate falls to 5 percent indefinitely. Assume investors require an 11 percent return on Suncor Energy stock. Is the stock priced correctly? What factors could affect this answer?

Reference no: EM131338820

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