2) Company A expects to pay its shareholders common shares, dividend $0.25 per share this year. The investor forecasted

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answerhappygod
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2) Company A expects to pay its shareholders common shares, dividend $0.25 per share this year. The investor forecasted

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2) Company A expects to pay its shareholders common shares,
dividend $0.25 per share this year. The investor forecasted the
company’s share will close at $30 per share. If the required rate
of return is 10%, what is the value of the shares?
3) Assume XYZ company earned a $2.50 a share last year &
paid a dividend of $1.10 per share at the end of the year. Price of
share at the end of the year is estimated at $22. Determine the
value of the share at the end of the year if the required rate of
return is 14%? If the market price is $22, would you buy stocks
from this company?
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