What rate of return do they expect to earn on the stock

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Reference no: EM133090439

Question - Company J pays a dividend of $1.64 per share and sells for $27 per share.

A. If investors believe the growth rate of dividends at 3% per year, what rate of return do they expect to earn on the stock?

B. If investors requires rate of 10% what growth rate they expect from the firm?

Reference no: EM133090439

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