What should buy the stocks of chris pin co

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Problem 1: Mr. Wa Is is deciding whether to invest in the ordinary shares of Chris Pin Co. which is expected to pay a P2.4 dividends at the end of the year. The stock's dividend is expected to grow at a rate of 10% a year until the end of third year. After this time, the stock's dividend is expected to grow at a constant rate of 5% a year. The stock is selling in the market at P50 per share. If Mr. Wa Is requires a 10% return on investment, should he buy the stocks of Chris Pin Co.?

Reference no: EM132931176

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