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1. (12 pts) McNally Motors just paid the dividend of $1. The stock's dividend is expected to grow at a constant rate of 5 percent
1. (12 pts) McNally Motors just paid the dividend of $1. The stock's dividend is expected to grow at a constant rate of 5 percent a year in to the future. The stock's discount rate is 13% A. Calculate the stock price today P0. B. Calculate the expected stock price in 30 years, P30. C. Calculate dividend yield for year 10 (if purchase the stock now). D. Calculate capital gain yield for year 20
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