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Hadlock Healthcare expects to pay a $1.00 dividend at the end of the year (D1 = $1.00). The stock's dividend is expected to grow at

Hadlock Healthcare expects to pay a $1.00 dividend at the end of the year (D1 = $1.00). The stock's dividend is expected to grow at a rate of 10 percent a year until three years from now (t = 3). After this time, the stock's dividend is expected to grow at a constant rate of 5 percent a year. The stock's required rate of return is 11 percent.

  1. Estimate the stock price P0.
  2. Calculate expected dividend yield and expected capital gain yield, in year 30
  3. Estimate expected stock price in year 1, that is P1.
  4. Estimate expected stock price in year 30, that. is P30

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