Will be adequate compensation for this investment

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You are considering the purchase of Crown Bakery, Inc. common stock that just paid a dividend od $19.59 per share. You expect the dividend to grow at a rate of 1.04 percent per year, indefinitely. You estimate the rate of return od 12.18%, will be adequate compensation for this investment. What is the most that you will be willing to pay for the common stock if you were to purchase it today?

Reference no: EM13809577

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