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A company most recently paid a dividend of $1.50. The dividends will increase by 2% per year indefinitely. The required return on the stock is
A company most recently paid a dividend of $1.50. The dividends will increase by 2% per year indefinitely. The required return on the stock is 14%.
Determine each of the figures below and explain how you arrived at your answers.
Stock price today, dividend yield and capital gains yield this year.
Stock price in 5 years, dividend yield and capital gains yield that year.
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