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Pina Company is expected to pay a $1.55 dividend next year. Dividends are expected to grow at 4 percent forever and the required rate of
Pina Company is expected to pay a $1.55 dividend next year. Dividends are expected to grow at 4 percent forever and the required rate of return is 8 percent.
d) In one year, immediately after the dividend is paid, i) What is the price of the stock? (Round intermediate calculations to 4 decimal places, e.g. 1.2415 and final answer to 2 decimal places, e.g. 15.61.) Stock price $ ii) What was the one-year holding period return? (Round answer to 2 decimal places, e.g. 15.61%.) Holding period return % e) Looking forward one year, what are the expected dividend and capital gains yields? (Round intermediate calculations to 4 decimal places, e.g. 1.2415 and final answer to 2 decimal places, e.g. 15.61%.) Dividend yield % Capital gains yield %Step by Step Solution
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