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In order to see exact numbers of your problem, please select your name in the Introduction tab first A firm is just about to pay

In order to see exact numbers of your problem, please select your name in the Introduction tab first

A firm is just about to pay its annual dividend. You expect that the dividend will be growing at high growth rate for few years and then the growth will stabilize at a sustainable rate. Growth rates, dividend and your required return are given below.

a) What are the dividends during the high growth period and one year later?

b) What is the share price at the end of high growth period?

c) What is today's cum-dividend and ex-dividend price?

d) Assuming that you buy stock ex-dividend now, what are your expected dividend yield and capital gains this year?

e) What are expected dividend yield and capital gains after the end of high growth period?image text in transcribed

52.00 at paid divided High orth rate High poruth period Salls orth Required in 3 years a) What are the dividend daring the growth period and os year 1 Day 1 2 Day 2 What is the price that of propried c) Wat la today's cun-divided and dividend price? Time Caio TV 1 2 Ex-dividend price Cuan-dividere price Amaning that you lwy mock ex-divided, what are your expected divided yield is year? Dividend Yield Capital Cair What are expected divided yield staalwerth end of the Evidend Yield Capital Chair

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