Estimate that a required rate of return

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Reference no: EM13722039

You are considering the purchase of crown bakery inc. Common stock that just paid a dividend of $20 per share. You expect the dividend to grow at a rate of 5.28 % per year, indefinitely. You estimate that a required rate of return of 12.25 percent will be adequate compensation for this investment. What is the most that you would be willing to pay for the common stock if you were purchased it today?

Reference no: EM13722039

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