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A stock is selling for $50 in the market. The companys beta is 1.2, the market risk premium (rM - rF) is 5%, and the
A stock is selling for $50 in the market. The companys beta is 1.2, the market risk premium (rM - rF) is 5%, and the risk-free rate is 3%. The most recent dividend paid is D0 = $2 and dividends are expected to grow at a constant rate g. Whats the dividend growth rate g for this stock?
Using the information from above, find the stocks capital gain yield.
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