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Return to question Problem 7-30 Nonconstant Growth (LO2, 3) Tattletale News Corp. has been growing ata rate of 20% per year, and you expect this
Return to question Problem 7-30 Nonconstant Growth (LO2, 3) Tattletale News Corp. has been growing ata rate of 20% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years. The last dividend paid was $11. The discount rte is 23% and the steady growth rate after 3 years is 496. a. What is the capital gain in stock price from year O to year 1? (Do not round intermediate calculations. Enter your answer as a dollar amount rounded to 3 decimal places) 8 Answer is complete but not entirely correct. Capital gairn s 20.150 b. Calculate the expected rate of return. (Do not round intermediate calculations. Round your answer to the nearest whole percent.) 3 Answer is complete but not entirely correct Expected rate of returr 20 0 96
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