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1) You're analyzing the stock of a certain company. The most recent dividend paid was $6 dollars per share. The company's discount rate is 13%,
1) You're analyzing the stock of a certain company. The most recent dividend paid was $6 dollars per share. The company's discount rate is 13%, and the firm is expected to grow at 5% per year forever. What is the dividend yield of this stock?
2) Assume a corporation has just paid a dividend of $ 2.52 per share. The dividend is expected to grow at a rate of 3.4% per year forever, and the discount rate is 6.4%.
What is the Capital Gains yield of this stock?
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