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Question #2 needs answering, Question 1 is for reference 1. The next dividend payment by the Bravo Inc. will be $2.04 per share. The dividends
Question #2 needs answering, Question 1 is for reference
1. The next dividend payment by the Bravo Inc. will be $2.04 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. If the stock currently sells for $37 per share, what is the required return? Required return=(D1/Current price)+Growth rate =2.04/37+0.045 =10.01% 2. For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield? For the company in the previous problem, what is the dividend yield? What is the expected capital gains yieldStep by Step Solution
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