What is the required return of the stock

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Reference no: EM13819138

The firm, Beta, is under a bad management such that the dividend payment is expected to decrease at a rate of 4% per year. Suppose the recent dividend payment is $3 per share and the stock price is $30.

(1) What is the required return of the stock?

(2) If nothing else happens what is your expectation about the stock price next year? What is the trend of stock prices over time?

Reference no: EM13819138

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