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10. The Dine-Out Food Company has been hit hard due to current crisis. The company's analysts predict that future earnings (and dividends) will decline at

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10. The Dine-Out Food Company has been hit hard due to current crisis. The company's analysts predict that future earnings (and dividends) will decline at a rate of 2 percent annually forever. Assume that risk premium for market portfolio is 8%, risk free rate is 3%, Dine-Out Food beta is 1.5 and its most recent dividend was $2.50. What will be the dividend yield of the Dine-Out Food Company stock in two years from now? (Show all your formula and calculations) (4 points)

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