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(Solved): XYZ stock is currently trading at $38 per share and pays an annual dividend of $1.90 per share. You ...



XYZ stock is currently trading at $38 per share and pays an annual dividend of $1.90 per share. You expect this dividend to increase to two dollars next year analyst project a continued dividend growth rate of 5% annually and your client requires a 10% rate of return. Should your client purchase the stock?



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