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Assume that Bon Temps is expected to experience supernormal growth of 30% for the next 3 years, then to return to its long-run constant growth

  1. Assume that Bon Temps is expected to experience supernormal growth of 30% for the next 3 years, then to return to its long-run constant growth rate of 6%. What is the stocks value under these conditions? What are its expected dividend yield and its capital gains yield in Year 1? In Year 4? Assume the same rate of return is 16% Dividend: Year 0 = $2 Year 1 = $2.12 Year 2 = $2.2472 Year 3 = $2.382

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