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2. Ms. Rolle your boss at Anderson, Capron & Young has asked you to analyze the Lil Man Bakery Company (LMBC), a chain of bakeries
2. Ms. Rolle your boss at Anderson, Capron & Young has asked you to analyze the Lil Man Bakery Company (LMBC), a chain of bakeries and expresso cafes; whose last dividend (DO, which was paid yesterday) was $2.00. Assume that the risk free rate (the Yield of T-Bills) is 7% and that the required rate of return on the market is 12%. In your report to Ms. Rolle, you are to answer the following questions: 2 Now assume that LMBC is expected to experience Nonconstant growth of 30% for the next 3 years, and then return to its long-run constant growth rate of 6%. What are its expected Dividend and Capital Gains Yield in Year 4? KT (4 Points)
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