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21. Xenon, Inc. will pay a dividend of $.50 (D) next year, which they will pay out of the $1.25 earnings per share that the

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21. Xenon, Inc. will pay a dividend of $.50 (D) next year, which they will pay out of the $1.25 earnings per share that the company expects to make. This dividend is expected to grow at a super rate of 12 percent for two years, and then settle down to a constant growth rate of 4 percent from then on. The required rate of return for Xenon, Inc. common stock is 10 percent Compute the price of the stock today, Show your work in your uploaded document. Upload Choose a File 3.33 pts Question 22 22. Xenon, Inc. will pay a dividend of $.50 (D) next year, which they will pay out of the $1.25 earnings per share that the company expects to make. This dividend is expected to grow at a super rate of 12 percent for two years, and then settle down to a constant growth rate of 4 percent from then on. The required rate of return for Xenon, Inc. common stock is 10 percent. Compute the dividend yield and the capital gains yield of the stock today. Show your work in your uploaded document

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