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Assume that Bon Temps is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.60 and whose dividend is expected to
Assume that Bon Temps is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.60 and whose dividend is expected to grow indefinitely at a 4% rate. (1) What is the firm's expected dividend stream over the next 3 years? (2) What is its current stock price? (3) What is the stocks expected value one year from now? (4) What are the expected dividend yield, capital gains yield, and total return during the first year?
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