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Question 2 You forecast a company's dividends for the next three years. In Year 1, you expect to receive $1.11 in dividends. In Year 2,
Question 2
You forecast a company's dividends for the next three years. In Year 1, you expect to receive $1.11 in dividends. In Year 2, you expect to receive $1.22 in dividends. In Year 3, you expect to receive $1.33 in dividends. After Year 3, dividends are expected to grow at 3%. The rate of return for similar risk common stock is 10%. What is the current value of this company's stock?
Question 3
What is the dividend yield for the company in Question 2 assuming the stocks price is the same as its valuation found in Question 2?
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