Question
The CatsNDogsRUs Company expects a constant growth in earnings and dividends of 4%/year into the foreseeable future. It is expected that the next dividend paid
The CatsNDogsRUs Company expects a constant growth in earnings and dividends of 4%/year into the foreseeable future. It is expected that the next dividend paid to stockholders will be $1.26/share. Currently the market of investors is demanding or requiring 7% on this investment. Show ALL work for full credit. a)(5 points) What is the current value of the stock? b)(2 points) What is the capital gains yield on this stock?
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Advanced Financial Accounting
Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King
3rd Edition
0070054142, 978-0070054141
