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Company X is expected to pay an year-end dividend to $5 a share on its common stock. After the dividend payment the stock is expected

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Company X is expected to pay an year-end dividend to $5 a share on its common stock. After the dividend payment the stock is expected to sell at $110 per share. The required rate of return on the common stock is 15%. Then, calculate the current price of the stock. Also calculate the dividend yield and capital gains yield for the stock. A share of common stock has an expected long-run constant dividend growth rate of 7%, and the most recent dividend Do. was $5.00. The required rate of return on the common stock is 18%. Then, using the dividend growth model, calculate the current price of the stock. A share of common stock has an expected long-run constant dividend growth rate of 6%, and the most recent dividend Do. was $5.00. The stock is currently selling for $50 per share. Calculate the required rate of return on the stock. Also calculate the dividend yield and capital gains yield for the stock

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