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A) NY Yankees Corp. will pay a year-end dividend of $4.50 per share which is expecte growth at a rate of 4% indefinitely. The discount

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A) NY Yankees Corp. will pay a year-end dividend of $4.50 per share which is expecte growth at a rate of 4% indefinitely. The discount rate is 10% i) What is the stock currently selling for? (Po) (2 marks) ii) If earnings are $5.00 a share. What is the implied value of growth opportunities? (3 marks) B) Blue Jays Corp has been growing at a rate of 15% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years. i) If the last dividend paid was $2, what will the next dividend be? (1 mark) ii) If the dividend rate is 10% and the steady growth rate after 3 years is 5%. What should the stock price be today? (4 marks) Hint: 10% is the required return

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