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Williams & Westrich stock: What is expected rate of return with growth of 8%

Williams & Westrich stock is currently selling for $15.25 per share, and the dividend is expected to continue at 92¢ per share. Management expects the stock to grow at 8%. What is your expected rate of return if you buy the stock for $15.25?

Solution Summary

Using the DDM model, the solution is easily calculated.

$2.19