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Consider a stock that is not planning to pay a dividend until 10 years from now. The first dividend paid will be $2. After that,

Consider a stock that is not planning to pay a dividend until 10 years from now. The first dividend paid will be $2. After that, the company will maintain a constant dividend growth rate of 5% forever. The required return for this stock is 8%.

a, What is the dividend yield this year?

b, What will the dividend yield be 50 years from now? (Put your answer in decimal form)

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