Problem

Negative Growth. According to the 2009 Value Line Investment Survey, the growth rate in di...

Negative Growth. According to the 2009 Value Line Investment Survey, the growth rate in dividends for JCPenney for the previous 10 years has been –11 percent. If investors feel this growth rate will continue, what is the required return for JCPenney stock? Does this number make sense? What are some of the potential reasons for the negative growth in dividends?

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Solutions For Problems in Chapter 7