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A share of stock has a dividend that is expected to grow at a constant perpetual rate. During the next year (t=0 to t=1), the
A share of stock has a dividend that is expected to grow at a constant perpetual rate. During the next year (t=0 to t=1), the dividend yield is expected to be 9.29%. The capital gains yield for the next year is expected to be 11.77%. Dividends are paid at years end. If the dividend paid at the end of the year (at t=1) is expected to be $5.45, what is a fair price for the stock in exactly 3 years from today
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