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1 2 . A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $ 2 per share. The
A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $ per share. The dividend is expected to grow at a constant rate of per year. The stocks required rate of return is
A What is the expected dollar dividend at the end of three years?
B What would be a price for this stock?
C What is the expected capital gains yield at the end of the third year?
D What is the expected total return yield this is the expected dividend yield expected capital gains yield for each of the next three years?
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