Question
1.You are given the following information for a share - The expected return on the share is 14% - The forecast for the next three
1.You are given the following information for a share
- The expected return on the share is 14% - The forecast for the next three annual dividends are $3.99, $3.94, $0.54, and $7.25 - After the fourth year, the long-term growth rate of the dividend is 2%
What is the expected value of the share in one year?
2.You are given the following information for a share:
- The expected return on the share is 14% - The forecast for the next three annual dividends are $3.99, $3.94, $0.54, and $7.25 - After the fourth year, the long-term growth rate of the dividend is 2%
What is the expected dividend yield of the share, given its intrinsic value?
Kindly provide step by step explanation here
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