Answered: Paychex Inc. (PAYX) recently paid a…

Paychex Inc. (PAYX) recently paid a dividend of $0.78. The dividend is expected to grow at a 15 percent rate. The current stock price is $46.11. What is the return shareholders are expecting

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Problem 8-22 Expected Return (LG8-5)

Paychex Inc. (PAYX) recently paid a dividend of $0.78. The dividend is expected to grow at a 15 percent rate. The current stock price is $46.11.

What is the return shareholders are expecting

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