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Use the information to answer the following questions. The last dividend paid by Klein Company was $2.00. Klein's growth rate is expected to be a
Use the information to answer the following questions. The last dividend paid by Klein Company was $2.00. Klein's growth rate is expected to be a constant 4% for 2 years, after which dividends are expected to grow at a rate of 12% forever. Klein's required rate of return on equity is 15%. What should be the current price of Klein's common stock? Select one: O a. $33.33 O b. $64.51 O c. $50.16 O d. $72.25 O e. $25.10 Continued from the previous question. What is the dividend yield of Klein's common stock in year 1? Select one: O a. 1.65% O b. 2.00% c. 2.09% O d. 4.18% O e. 3.22% Continued from the previous question. You would expect the stock price to in one year. Select one: O a. Increase by 6.0% O b. Decrease by 2.09% O c. Increase by 11.78% O d. Decrease by 9.91% O e. Increase by 9.82%
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