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UUU Company has a current dividend of $ 2 . 5 0 . Shareholders require a 1 0 % rate of return. Although the dividend

UUU Company has a current dividend of $2.50. Shareholders require a 10% rate of return. Although the dividend has been growing at a rate of 25% per year in recent years, this growth rate is expected to last only for another 2 years. After Year 2, the growth rate will stabilize at 8%.
a. What is UUUs stock worth today?
b. What is the expected stock price at Year 1?
c. For year 1, what is the expected dividend yield, expected capital gains yield, and expected total return?
d. For year 2, what is the expected dividend yield, expected capital gains yield, and expected total return yield?

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