Question: 1. a) A stock is expected to pay a dividend of $2.06 and is currently priced at $92.45. Dividends are expected to grow at a

1. a) A stock is expected to pay a dividend of $2.06 and is currently priced at $92.45. Dividends are expected to grow at a constant rate of 3% forever. What is the stock's required return?

b) The required return on a stock is 9.34% and the stock has a constant growth rate of 2.43%. What is the dividend yield?

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