Market rate of return for type of security

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Reference no: EM131593830

Majestic Homes stock traditionally provides an 8% rate of return. The company just paid a $2.50 a year dividend which is expected to increase by 5% per year. If you are planning on buying 1,000 shares of ths stock next year, how much should you expact to pay per share if the market rate of return for this type of security is 7% at the time of your purchase?

Reference no: EM131593830

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