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The common stock of NCP paid ​$1.25 in dividends last year. Dividends are expected to grow...

The common stock of NCP paid ​$1.25 in dividends last year. Dividends are expected to grow at an annual rate of 9.10 percent for an indefinite number of years.

a. If​ NCP's current market price is ​$27.95 per​ share, the​ stock's expected rate of return is____%. ​(Round to two decimal​ places.)

b. If your required rate of return is 11.1 ​percent, the value of the stock would be ​$ _____. ​(Round to the nearest​ cent.)

c. You should (buy or sell) the stock because the expected rate of return is ( less than or greater than) your required rate of return or the value of the stock is ( larger than or smaller than) the current market price.  

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jeff jeffy answered 1 year ago
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