4. Kameron Company stock is selling for $85/share. They just paid a dividend of $7.50/share. Their...

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Finance

4. Kameron Company stock is selling for $85/share. They justpaid a dividend of $7.50/share. Their expected dividend growth rateis 6.5%.
a. What is the required rate of return on the stock?
b. If growth rate (annual) expectations change to 9%, what willbe the required rate of return

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4. Kameron Company stock is selling for $85/share. They justpaid a dividend of $7.50/share. Their expected dividend growth rateis 6.5%.a. What is the required rate of return on the stock?b. If growth rate (annual) expectations change to 9%, what willbe the required rate of return

4. Kameron Company stock is selling for $85/share. They just paid a dividend of $7.50/share. Their...

90.2K

Verified Solution

Question

Finance

4. Kameron Company stock is selling for $85/share. They justpaid a dividend of $7.50/share. Their expected dividend growth rateis 6.5%.
a. What is the required rate of return on the stock?
b. If growth rate (annual) expectations change to 9%, what willbe the required rate of return

Answer & Explanation Solved by verified expert

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