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4 . Conroy Consulting Inc has a current dividend of $ 2 . 5 . Shareholders require a 1 5 % return. Although the dividend

4. Conroy Consulting Inc has a current dividend of $2.5. Shareholders require a 15% return. Although the dividend has been growing at a rate of 30% per year in recent years, this growth rate is expected to last only for another 2 years, after which the growth rate stabilizes at 7%.
Suppose the actual market value or price is $85.50, what would be the expected rate of return to investors of Conroy Consulting stock?
Your client wants to know the future performance of this stock before s/he buys the stock. Forecast the expected value or price of this company (ceteris paribus) for the next 10(ten) years starting from today (P0); that is P0 to P10.
Estimate the expected annual dividend yields, capital gains yields and the annual total returns, the 10-year average return, its standard deviation (i.e., absolute risk) and coefficient of variation (i.e., relative risk and risk per unit return). Please show with excel.

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