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b please You expect a share of stock to pay dividends of $1.10, $1.35, and $1.60 in each of the next 3 years. You believe
b please
You expect a share of stock to pay dividends of $1.10, $1.35, and $1.60 in each of the next 3 years. You believe the stock will sell for $12.00 at the end of the third year. a. What is the stock price if the discount rate for the stock is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Stock price $ 12.33 b. What is the dividend yield for year 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Dividend yield % 12.94 c. What will be the dividend yield at the start of year 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete and correct. Dividend yield 10.83 % Step by Step Solution
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