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TH WhatsApp ii. what is the capital gain yield of the stock? b) If your required return on the stock is 10%, will you purchase

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TH WhatsApp ii. what is the capital gain yield of the stock? b) If your required return on the stock is 10%, will you purchase the stock now? Explain your answer with calculation, c) Your friend, Peter, predicts that the stock will pay the following dividends over the next three years: S2, $5, and $4 per share. Afterwards, the dividend growth rate will be constant at 3% thereafter. If Peter's required return is 10%, determine the stock value today for him. d) Your another friend, Joe, thinks that the company will adopt an odd dividend policy. He believes that the company will pay $2 dividend per share in every odd number of years (.e. 1, 3, 5, 7, 9 ...), and $5 dividend per share in every even number of years (1.e. 2, 4, 6, 8, 10...); that is, the dividend pattern in the following years will be $2, 85, 82, 85, 82, $5... onwards. Using a more sophisticated financial modelling technique, based on a 1 10% required rate of return, both of you agreed that the stock price today should be $34.29 per share. However, due to the recent economic downturn arising from COVID-19, the sensor management of the company intends to reduce the dividend payments by Si per share every year indefinitely. Assume all your anticipation about the company's dividend payout pattern, and above estimated stock price ($34.29 per share) are correct, how much you are willing to pay per share today based on this new information of cutting the dividend payout? Question 2 (25 mark)

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