Current market price because stock would be overvalued

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Reference no: EM131359633

The common stock of NCP paid $1.29 in dividends last year. Dividends are expected to grow at an annual rate of 6.00% for an infinite number of years (ROUND TO THE NEAREST CENT)

A- if your required rate of return is 8.70 percent, the value of the stock is?

B- you (should/should not) make the investment if your expected value of the stock is (greater/less) than the current market price because the stock would be overvalued.

Reference no: EM131359633

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