A stock is selling for $31.25/share, and it is believed that next years dividend will...
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Accounting
A stock is selling for $31.25/share, and it is believed that next years dividend will be $1.00 per share.
a) What is the growth rate of the stock, if returns in the market are around 4% right now?
b) Imagine you paid the $31.25 per share. You then hold it for one year, collect the $1.00 dividend, and then sell it for $31.00. What would be your one-year return on the stock?
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