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Auld Inc. is in a declining industry. Sales, earnings, and dividends are all decreasing at a rate of 5% per year. Investors have a required
Auld Inc. is in a declining industry. Sales, earnings, and dividends are all decreasing at a rate of 5% per year. Investors have a required return of 12% and the next dividend is expected to be $8.50. a) What is the value of a share? b) What price do you forecast for the stock next year? c) Calculate the dividend yield and the capital gain (loss) yield
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