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A stock is expecied to pay a year end dividend of 52.00, i. 6,D_(1)=52.00 . The dividend is oppected to decline at a Wh, dien
A stock is expecied to pay a year end dividend of 52.00, i.
6,D_(1)=52.00
. The dividend is oppected to decline at a Wh, dien which of the following etatements is CORRET?\ a. The company's current stock price is
$20
.\ b. The company's dividend yield 5 yearn from now is expected to be
10%
\ c. The constant growth model cannot be used because the growh rate is negative\ d. The company's expected capital gains yield is
5%
.\ c. The company's expected stock price at the beginning of next year is
$9.50
.
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