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What is the expected rate of return

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Problem -

1. If a common stock is worth $80 and the dividend growth rate is 5% with a dividend expected to pay $2.00 in a year's time, what is the expected rate of return?

2. An investor wishes to know what the value of preferred stock, when the dividend is $3.00 per share and the expected rate of return is 6.5%?

Reference no: EM132713018

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