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Your company just paid a dividend of $2 and announced that it will pay the same dividend as in the next two years and start
Your company just paid a dividend of $2 and announced that it will pay the same dividend as in the next two years and start to increase the dividend each year at 4% from year 3 and on. Investor's required rate of return of this tock is 15%. a. What is the current value per share of your company's stock? b. What is the expected capital gain yield in year 1 and year 10 respectively
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