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Tattletale News Corp. has been growing at a rate of 20% per year, and you expect this growth rate n earnings and dividends to continue
Tattletale News Corp. has been growing at a rate of 20% per year, and you expect this growth rate n earnings and dividends to continue for another 3 years. The last dividend paid was $5. The discount rate is 21% and the steady growth rate after 3 years is 4%. a. What is the capital gain in stock price from year O to year 1? (Do not round intermediate calculations. Enter your answer as a dollar amount rounded to 3 decimal places.) Capital gain b. Calculate the expected rate of return. (Do not round intermediate calculations. Round your answer to the nearest whole percent.) Expected rate of return
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