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A Company pays its dividends once per year. The Companys last dividend (paid yesterday) was $1.30. Its dividend growth rate is expected to grow each

A Company pays its dividends once per year. The Companys last dividend (paid yesterday) was $1.30. Its dividend growth rate is expected to grow each year at 20% for three (3) years, after which dividends are expected to grow at a rate of six percent (6%) forever. Its required return (WACC) is 11%.

What is the best estimate of the current stock price?

What is the capital gains yield in year 3?

What is the dividend yield in year 3?

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