What is the value of foggy stock to an investor

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Reference no: EM131873573

The earnings of Foggy Weather Forecasting Company are expected to grow at an annual rate of 14% over the next 5 years and then slow to a constant rate of 10% per year. Foggy currently pays a dividend of $0.36 per share. What is the value of Foggy’s stock to an investor who requires a 16% rate of return? If stock has a market price of $15 do you buy?

Reference no: EM131873573

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