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Suppose you expect a firm to pay an annual dividend of $1.80 per share in the coming year and to trade for $105.00 per share

  1. Suppose you expect a firm to pay an annual dividend of $1.80 per share in the coming year and to trade for $105.00 per share at the end of the year. If the expected return is 5.80%, what is the most you would pay today for stock; 2) what is dividend yield; and 3) what capital gain rate would you expect at this price? Show your calculations.

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