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Use the following information to answer the next 4 questions: If D 0 = $3.50, g (which is constant) = 6.0%, and P 0 =
Use the following information to answer the next 4 questions:
If D0 = $3.50, g (which is constant) = 6.0%, and P0 = $80, what is the stock's expected dividend yield for the coming year?
1. The first dividend is calculated using the:
a- Constant growth formula
b- Corporate valuation model
c- Nonconstant growth formula
d- Two-Stage growth model
2- The formula for calculating the first year dividend is:
a- D1 = D0(1/g)
b- D1=D0(1-g)
c- D1 = D0(1+g)
d- D1=D0/(1-g)
3- what is The expected rate of return ?
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