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ANSWER ASAP WILL RATE THANKS The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a
ANSWER ASAP WILL RATE THANKS
The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 21% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 16% per year. a. What is your estimate of the intrinsic value of a share of the stock? (Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? (Use intermediate values rounded to 2 decimal places. Round your answer to 2 decimal places.) c. What do you expect its price to be one year from now? (Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. d-1. What is the implied capital gain? (Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places.)Step by Step Solution
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