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What is the expected return

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Question - Melissa Popp is thinking about buying some shares of Education, Inc., at $50 per share. She expects the price of the stock to rise to $75 over the next three years. During that time she also expects to receive annual dividends of $5 per share.

a) What is the intrinsic worth of this stock, given a 10% required rate of return?

b) What is the expected return?

Reference no: EM131818552

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