Greg Inc. company stock is expected to grow at a constant rate indefinitely. The company stock...

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Question

Answer 1

Answer #1

Answer is B 5.5%

Explanation

Present value of a stock/estimated dividends = (ROR-Growth rate)

Greg Inc Company Present Value = 50

ROR =18

divedend = 4

Growthrate = ROR-( Present value/dividend)

18-(50/4)

18-12.5 =5.5

Growth Rate =5.5

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Answer 2

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