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National Food Limited common stock paid a $2.60 annual dividend per share and had a closing price of $26. Assume that the markets required return,
National Food Limited common stock paid a $2.60 annual dividend per share and had a closing price of $26. Assume that the markets required return, or capitalization rate, for this investment is 14 percent and that dividends are expected to grow at a
constant rate forever.
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Calculate the implied growth rate in dividends.
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What is the expected dividend yield?
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What is the expected capital gains yield?
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