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Horizon Corp. is experiencing rapid growth. The company expects dividends to grow at 20% per year for the next 5 years before leveling off at
Horizon Corp. is experiencing rapid growth. The company expects dividends to grow at 20% per year for the next 5 years before leveling off at 5% into perpetuity. The required return on the company's stock is 10%. If the dividend just paid was $1.00, what is the expected capital gains yield for the first year if the required return on the company's stock remains at 10%? please show your work.
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