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If D 1 = $ 1 . 5 0 , g ( which is constant ) = 5 . 4 % , and P 0

If D1= $1.50, g (which is constant)=5.4%, and P0= $88, what is the stock's expected capital gains yield for the coming year?
a.5.40%
b.1.70%
c.7.10%
d.1.80%
e.3.70%
The Demarcus Company just paid a dividend of $1.55 per share, and that dividend is expected to grow at a constant rate of 5.10% per year in the future. The company's beta is 2.00, the market risk premium is 4.60%, and the risk-free rate is 4.50%. What is Demarcus's current stock price, P0?
a. $31.94
b. $18.94
c. $18.02
d. $38.75
e. $40.73
The last dividend paid by Demarcus Corporation was $2.75. The dividend growth rate is expected to be constant at 1.7% for 2 years, after which dividends are expected to grow at a rate of 10.0% forever. The firm's required return (rs) is 14.0%. What is the best estimate of the current stock price? Do not round intermediate calculations.
a. $73.56
b. $64.83
c. $57.44
d. $66.94
e. $67.58

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