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Stocks and Their Valuation: Homework Future Dividends, Future Stock Price, Dividend Yields and Capital Gains Assume MCD just paid a dividend of $1 and its

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Stocks and Their Valuation: Homework Future Dividends, Future Stock Price, Dividend Yields and Capital Gains Assume MCD just paid a dividend of $1 and its stock is currently selling for $30. You expect the constant growth of MCD's dividend and stock price to be 5%. Assume you purchase one share of MCD stock today. 1. What is the expected dividend one year from today? a. b. What is the expected stock price one year from today? What is the expected dividend yield for the coming year (i.e., percent earned) c. I d. What is the expected capital gain for the coming year (percent earned)? e. What is the total return (i.e., percent earned: dividend + capital gain)? n (United States) Focus

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