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QUESTION 6 Suppose you expect Princess & Gracie Pet Stores to pay an annual dividend of $1.20 per share in the coming year and to

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QUESTION 6 Suppose you expect Princess & Gracie Pet Stores to pay an annual dividend of $1.20 per share in the coming year and to trade for $50 per share at the end of the you Investments with equivalent risk to this company have an expected return of 10.80%. What dividend yield and capital gain rate would you expectat price? Dividend yield = 10.8% and capital gain 0% Dividend yield = 1.3% and capital gain 9.5% Dividend yield 2.6% and capital gain 8.2% Dividend yield - 2.6% and capital gain 8.8% DO

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