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You observe that the stock of MMM, Inc. has just paid a dividend $2.76. You expect the future dividends to grow at a constant growth

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You observe that the stock of MMM, Inc. has just paid a dividend $2.76. You expect the future dividends to grow at a constant growth rate of 4.35% per year forever. If the market is using a discount rate of 13%, which of the following statements are true? 1. The stock price today is $33.30. ii. The expected stock price two years from now is $41.38. iii. The capital gains yield is the difference between the discount rate and growth rate and is equal to 12%. iv. An investor holding the stock will earn a discount rate of 13% and a growth rate of 4.35% giving a ttal expected return of 13%+4.35%= 17.35% i only i and ii All statements are true i, ii, and iii ii and iv

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