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(11 pts) Investors require a 15 percent rate of return on Goulet Company's stock (Ks = 15%) a. What will be the Goulet's stock value
(11 pts) Investors require a 15 percent rate of return on Goulet Company's stock (Ks = 15%) a. What will be the Goulet's stock value if the previous dividend was DO = $2 and if investors expect dividends to grow at a constant compound annual rate of 5 percent? b. What is expected dividend yield on the stock investment? c. What is the expected capital gains yield? d. What are the two assumptions when we apply the constant growth model
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