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* * * Please awnser with excel equations * * * A broker offers to sell shares of Bay Area Healthcare, which just paid a
Please awnser with excel equations A broker offers to sell shares of Bay Area Healthcare, which just paid a dividend of $ per share. The dividend is expected to grow at a constant rate of percent per year. The stocks required rate of return is percent.
a What is the expected dollar dividend over the next three years?
b What is the current value of the stock and the expected stock price at the end of each of the next three years?
c What is the expected dividend yield and capital gains yield for each of the next three years?
d What is the expected total return for each of the next three years?
e How does the expected total return compare with the required rate of return on the stock? Does this make sense? Explain your answer.
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