Question
2. The following information about a dividend paying stock is provided Dividend today, $10 Expected constant dividend growth, 5% Markets required rate of return on
2. The following information about a dividend paying stock is provided
- Dividend today, $10
- Expected constant dividend growth, 5%
- Markets required rate of return on this stock, 9%
a. The price of this stock rounded to the nearest whole cent is?
b. One year from today, the stocks price rounded to the nearest whole cent will be?
c. If the price today is $280, the markets required rate of return on the stock in decimal form rounded to the nearest 0.001 is?
d. If the market's required rate of return on this stock decreases to 8% and the price today is $350.00, the expected dividend yield on the stock expressed in decimal form rounded to the nearest 0.001 is?
e. If the market's required rate of return on this stock decreases to 8% and the price today is $350.00, the expected capital gains yield on the stock in decimal form rounded to the nearest .01 is?
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