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iv. Last year dividend of a stock is Rs. 3 and the growth rate expected for the next two years is 15% and their after

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iv. Last year dividend of a stock is Rs. 3 and the growth rate expected for the next two years is 15% and their after the growth rate converges to a constant growth rate of 5% per annum. If the required rate of return is 16%, a. What is the price of the stock at year 0, 1 and 2 b. Calculate and discuss your observations on the behavior of capital and dividend yields over supper normal growth and normal growth periods

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