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The Fastfood Company has been hit hard due to current economic crisis. The company's analysts predict that earnings (and dividends) will decline at a rate

The Fastfood Company has been hit hard due to current economic crisis. The company's analysts predict that earnings (and dividends) will decline at a rate of 4 percent annually forever. Assume that risk premium for market portfolio is 5%, risk free rate is 2%, Fastfood beta is 2 and the most recent dividend paid was $2.00. What will be the dividend yield of the Motion Picture Company in two years from now? Assume the market is in equilibrium. (Show all your formula and calculations)

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