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QUESTION 4 A stock is bought for $50 and sold for $53 1 year later, immediately after it has paid a dividend of $2. What
QUESTION 4 "A stock is bought for $50 and sold for $53 1 year later, immediately after it has paid a dividend of $2. What is the capital gain rate for this transaction? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer." QUESTION 5 "Company D is expected to pay a dividend of $3 once a year. It is expected to sell for $50 1 year from today. The equity cost of capital is 20%. What is the expected capital gain rate from the sale of this stock 1 year from today? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer." QUESTION 6 "A stock is expected to pay $6 per share every year indefinitely. The current price of the stock is $600. The equity cost of capital for the company is 15%. What price would an investor be expected to pay per share 3 years into the future? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an
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