Question
1.Calculate the dividend yield of a share given the following information. - The most recent dividend was $4.99. - The dividends are expected to grow
1.Calculate the dividend yield of a share given the following information. - The most recent dividend was $4.99. - The dividends are expected to grow at a rate of 19.29% for the next three years.
After three years, you expect the dividends to grow at a constant rate of 1% in perpetuity. The relevant expected return for the share is 11.83%.
2.With the given assumptions, calculate the expected fair value of a share in one year, given the following information. - The most recent dividend was $4.99. - The dividends are expected to grow at a rate of 16.22% for the next three years.
After three years, you expect the dividends to grow at a constant rate of 0% in perpetuity. The relevant expected return for the share is 8.69%.
Calculate the capital gains yield of a share (with same information)
please include step by step details for me to understand in a better way
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