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rioles Company pays its dividends once per year. The Orioles Company s last dividend ( paid yesterday ) was $ 1 . 2 0 .
rioles Company pays its dividends once per year. The Orioles Companys last dividend paid
yesterday was $ Its dividends are expected to grow each year at for three years, after which
dividends are expected to grow at a rate of four percent forever. Its required return is
a What is the best estimate of the current stock price of Orioles Company?
b What is the capital gains yield in year
c What is the dividend yield in year
d Pretend today is January Baltimore Company has a share price of $ today; If Baltimore Company is
expected to pay a dividend of $ per share at the end of the year and if Baltimore Company's stock price is
expected to grow to $ at the end of the year, What is the equity cost of capital of Baltimore Company?
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