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please answer all 3 questions and show your work. thank you. 7.2. Required Returns Suppose we observe a stock selling for $40 per share. The

please answer all 3 questions and show your work. thank you. image text in transcribed
7.2. Required Returns Suppose we observe a stock selling for $40 per share. The next dividend will be $1 per share, and you think the dividend will grow at 12 percent per year forever. What is the dividend yield in this case? The capital gains yield? The total required return? (See Problem 3.)

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