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IV. Shares of Allegan Inc are not expected to pay any dividends for the next 10 years. The dividend is expected to be $3.00 at

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IV. Shares of Allegan Inc are not expected to pay any dividends for the next 10 years. The dividend is expected to be $3.00 at t-11 and dividends thereafter are expected to grow at 4% forever. The expected return is 14% and the opportunity cost of investing in the shares is 14%. (12 points) a. Draw the time line b. Find the current price. c. Find the capital gains yield for the company. d. What is the dividend yield

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