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18. You own a growth stock called Cain Corporation. This stock just paid a dividend of $3.75 per share and is expected to increase its
18. You own a growth stock called Cain Corporation. This stock just paid a dividend of $3.75 per share and is expected to increase its dividend by 20% for the next two years and then maintain a constant 5% growth rate thereafter. Assume a required rate of return of 15%. What is the expected dividend yield for this stock?
Group of answer choices
Between 10% and 11%
Between 9% and 10%
Between 8% and 9%
Between 7% and 8%
Between 6% and 7%
Between 5% and 6%
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