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1. a) Analysts expect Costco stock to pay a dividend of $3.55 in 1 year and is expected to sell for $378.42 at that time.

1. a) Analysts expect Costco stock to pay a dividend of $3.55 in 1 year and is expected to sell for $378.42 at that time. If the required return is 5.4%, what is the value of the stock?

b) A stock has a dividend yield of 2.44% and a capital gains yield of 8.85%. What is the stock's required return?

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