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Suppose you believe that TECO's 6 percent dividend growth will only hold for five years. After that, TECO's historical 10 year average of 7.5 percent.
Suppose you believe that TECO's 6 percent dividend growth will only hold for five years. After that, TECO's historical 10 year average of 7.5 percent. What was the value of TECO's stock on January 1, 1992, if the required rate of return is 13.5 percent? What is the expected stock price at the end of 1992 assuming the stock is in equilibrium? What is the expected dividend yield, capital gains yield, and total return for 1992?
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