Question: 1. If D 1 = $2.50, g (which is constant) = 5%, and P 0 = $65, what is the stocks expected capital gains yield

1.

If D1 = $2.50, g (which is constant) = 5%, and P0 = $65, what is the stocks expected capital gains yield for the coming year, xx%, no % sign?

2.

A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10%, and the constant growth rate is g = 2%. What is the current stock price, xxx.xx, no $ sign?

3.

If D0 = $2.00, g (which is constant) = 3%, and P0 = $49, what is the stocks expected dividend yield for the coming year, x%, no % sign?

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