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(7) please help me with this Using the constant dividend growth rate model, a stock analyst observed the most recent annual dividend of Company X
(7) please help me with this
Using the constant dividend growth rate model, a stock analyst observed the most recent annual dividend of Company X at $2.00 per share. The required rate of return on the stock is 12%. He believes dividends are growing at a constant rate of 7% per year and this rate is expected to continue indefinitely. Using the constant growth rate model, the dividend yield and capital gain yield on the stock are. respectively: 6.67% ; 7.00% 5.00% : 6.00% 5.00% ; 7.00% 12.00%; 7.00% 13.50%; 7.00%Step by Step Solution
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