Q1 Ravi equity share currently sells for 23 per share. The company’s finance manager anticipates a constant growth rate of 10.5%

Q1 Ravi equity share currently sells for 23 per share. The company’s finance manager anticipates
a constant growth rate of 10.5% and an end-of-year dividend of 2.50. (a) What is the expected rate of return?
(b) If the investor requires a 17% return, should he purchase the stock?

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