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1 If D = $3.00, P = $50, and P = $52, what are the stock's expected dividend yield, expected capi- tal gains yield, and
1 If D = $3.00, P = $50, and P = $52, what are the stock's expected dividend yield, expected capi- tal gains yield, and expected total return for the coming year? (6%, 4%, 10%) A stock is expected to pay a dividend of $2 at the end of the year. The required rate of return is r 12%. What would the stock's price be if the constant growth rate in dividends were 4%? ($25.00) What would the price be if g = 0%? ($16.67) = P If D = $4.00, r = 9%, and g = 5% for a constant growth stock, what are the stock's expected dividend yield and capital gains yield for the coming year? (4%, 5%) = 20%, 0 Suppose D = $5.00 and r = 10%. The expected growth rate from Year 0 to Year 1 is 90,1 the expected growth rate from Year 1 to Year 2 is 9,2 = 10%, and the constant growth rate beyond Year 2 is g = 5%. What are the expected dividends for Year 1 and Year 2? ($6.00 and $6.60) What is the expected horizon value price at Year 2 (P)? ($138.60) What is P? ($125.45)
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