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A firm plans to begin paying dividends in 2 years. The first dividend will be $5. After that, dividends will increase by 1.5% per year
A firm plans to begin paying dividends in 2 years. The first dividend will be $5. After that, dividends will increase by 1.5% per year indefinitely. The required return on the stock is 12%. a)what is the stock price today? What are the dividend yield and capital gains yield for this year? b) what will the stock price be in 5 years? What will dividend yield and capital gains yield be in 5 years?
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