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2. (20%) (Stocks) ToyTime's common stock's annual dividend for the next 3 years is expected to be $2. Thereafter, the dividend is expected to grow

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2. (20%) (Stocks) ToyTime's common stock's annual dividend for the next 3 years is expected to be $2. Thereafter, the dividend is expected to grow 4% per year. Stocks of ToyTime's risk are expected to eam 11% per year. a. Calculate the share price today and at the beginning of each of the next 4 years. b. Calculate the P/E ratio for the next 4 years. c. Calculate the dividend yield and capital gain yield for each year. d. Does the dividend yield plus the capital gain yield equal to the expected retum each year? Briefly explain. 2. (20%) (Stocks) ToyTime's common stock's annual dividend for the next 3 years is expected to be $2. Thereafter, the dividend is expected to grow 4% per year. Stocks of ToyTime's risk are expected to eam 11% per year. a. Calculate the share price today and at the beginning of each of the next 4 years. b. Calculate the P/E ratio for the next 4 years. c. Calculate the dividend yield and capital gain yield for each year. d. Does the dividend yield plus the capital gain yield equal to the expected retum each year? Briefly explain

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