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What is the value of the common stock

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Reference no: EM132392811

1. Assume the expected inflation rate is 3.6 percent. If the current real rate of interest is 6.8 percent, what should the nominal rate of interest? be?

2. If the Stanford? Corporation's net income is ?$237 ?million, its common equity is ?$824 ?million, and management plans to retain 75 percent of the? firm's earnings to finance new? investments, what will be the? firm's growth? rate?

3. Header? Motor, Inc., paid a ?$2.59 dividend last year. At a constant growth rate of 7 ?percent, what is the value of the common stock if the investors require a 12 percent rate of? return?

Reference no: EM132392811

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