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Silver Sun Recycling stock has an expected annual return of 12.36 percent. The stock is currently...

Silver Sun Recycling stock has an expected annual return of 12.36 percent. The stock is currently priced at 46.39 dollars per share and has an expected dividend yield of 7.86 percent. What is the price of the stock expected to be in 1 year?

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Answer #1

expected annual return=dividend yield+growth rate

growth rate=(12.36-7.86)=4.5%

Hence price in one year=Current price*(1+growth rate)

=$46.39*1.045

=$48.47755

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