What is the estimated value of the common stock

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Carlson Enterprises' common stock dividend is expected to grow at 4% per year. The dividend recently paid was $0.38 per share, and the required return is 7%.

a. What is the estimated value of the common stock?

b. If the value of a common stock was $87 per share and dividends were recently $2.49, but expected to grow at 5% per year, what would be the required rate of return?

Reference no: EM131886235

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