Suppose that you are considering investing in a company that has paid a common stock dividend of $1.20 per share for the past 5 years and is expected to do so for the foreseeable future. a. What required rate of return would result in a price of $28 per share ?b. Suppose that the dividend is expected to grow at a rate of 5% per year for the foreseeable future, and the required return is 13%. What is the value of a share of stock?
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