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last year dividend of a stock is 3 and growth rate expected for the next two years is 15% and their after the growth rate
last year dividend of a stock is 3 and 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%
- what is the price of the stock at year 0,1, and 2
- calculate and discuss your observations on the behavior of dividend yield and capital gain yield over super normal growth and normal growth periods?
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