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Business, 26.07.2019 20:10 ineedhelp2285

Milton glasses recently paid a dividend of $1.70 per share, is currently expected to grow at a constant rate of 5%, and has a required return of 11%. milton glasses has been approached to buy a new company. milton estimates if it buys the company, its constant growth rate would increase to 6.5%, but the firm would also be riskier, therefore increasing the required return of the company to 12%. should milton go ahead with the purchase of the new company?

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