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An issue of common stock bought today is expected to pay a dividend of $10.15 at the end of the year 1. Its annual constant
An issue of common stock bought today is expected to pay a dividend of $10.15 at the end of the year 1. Its annual constant dividend growth rate is equal to 4%. If the required rate of return is 12%: a. What is its expected price at the beginning of year 2? b. What is the expected price of the stock today? c. What are the current and capital gain yields during the first year of ownership?? Please Show all work.
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