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Solve for the Intrinsic value of stock today and What is the expected Dividend yield and capital Gain yield at this time? Corporation Bank, just
Solve for the Intrinsic value of stock today and What is the expected Dividend yield and capital Gain yield at this time? Corporation Bank, just paid a dividend of $1.60 per share. The dividend is expected to grow at a supernormal growth rate of 20% for the next two years. After that company is expected to reduce its dividend growth rate by 4% for the next four years. From that point onward company will make a progress at a rate of 5% forever. The required rate of return is 10%.
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