6. Majestic Homes' stock traditionally provides 6% rate of return. The company just paid a $2...

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Question

6. Majestic Homes stock traditionally provides 6% rate of return. The company just paid a $2 annual dividend, which is expec

Answer 1

Answer #1

solution: 70.73 P1=D2/(r-g) 2*(1.03^2)/(0.06-0.03) P1= stock price in one year r=require rate of return g=growth D2= Dividend

Answer 2

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