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# Mercier Corporation's stock is selling for \$95. It has just paid a dividend of \$5 a share. The expected growth rate in dividends is 8 percent. a.

Mercier Corporation’s stock is selling for \$95. It has just paid
a dividend of \$5 a share. The expected growth rate in dividends is
8 percent.
a. What is the required rate of return on this stock?
that should lead to dividend increases of 10 percent
annually. What will be the new value of Mercier’s stock?

Mercier Corporation’s stock is selling for \$95. It has just paid
a dividend of \$5 a share. The expected growth rate in dividends is
8 percent.
a. What is the required rate of return on this...

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