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Future Corp. is growing rapidly. Dividends are expected to grow at a 20% rate for the next three years, with the growth rate falling off
Future Corp. is growing rapidly. Dividends are expected to grow at a 20% rate for the next three years, with the growth rate falling off to a constant 6% thereafter. If the required return is 14% and the company has just paid a $2.90 dividend, show the following calculations:
a. Find the current price of this share (P0)
b. Calculate Dividend Yield and Capital gains yield today
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