What is the computed prices of its common stock

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Reference no: EM132055712

The Weatherfield Way Construction Company has common and preferred stock outstanding.

The preferred stock pays an annual dividend of $7.50 per share, and the required rate of return for similar preferred stocks is 10%.

The common expects to pay a dividend of $3 per share next year, and the company expects its dividends to grow at a constant 10% growth rate.

The required rate of return on similar common stocks is 15%. What is the computed prices of its common stock?

Reference no: EM132055712

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