Question: 2. You are trying to value Global's common stock using a one period model. Suppose you expect Global to pay out a dividend of $2.50

 2. You are trying to value Global's common stock using a

2. You are trying to value Global's common stock using a one period model. Suppose you expect Global to pay out a dividend of $2.50 next year and to trade at $75 just after the dividend has been paid. Discount rate is 12% per year. What will be the dividend yield? 13. Global's stock is selling for $15.47 this morning. Analysts believe the stock will sell for $17.84 in one year. The stock is expected to pay an annual dividend of $0.50 per share. What return will you earn if you purchase now

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