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(5pt) Dividend growth model - Negative growth. Assume that Valley Nova's earnings and dividends are expected to decline by a constant 6% per year-that is,
(5pt) Dividend growth model - Negative growth. Assume that Valley Nova's earnings and dividends are expected to decline by a constant 6% per year-that is, g=6%. Why might someone be willing to buy such a stock, and at what price should it sell? What would be the dividend yield and capital gains yield in each year
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