Question: A company does not plan to pay dividends for the next five years. After that, they will make a fixed dividend payment of $3 per

A company does not plan to pay dividends for the next five years. After that, they will make a fixed dividend payment of $3 per year for 3 years. After that, they will increase the dividend by 2% per year indefinitely. The required return on the stock is 12%. What is the value of the stock today? [p0] What is the capital gains yield this year? [cgy0] What is the dividend yield this year? [dy0] What is the value of the stock in 8 years? [p8] What is the capital gains yield in 10 years? [cgy 10] What is the dividend yield in 13 years? [dy13] What is the value of the stock in 3 years? [p3] What is the dividend yield in 3 years? [dy3] What is the capital gains yield in 3 years? [cgy3]

A company does not plan to pay dividends for the next five years. After that, they will make a fixed dividend payment of $3 per year for 3 years. After that, they will increase the dividend by 2% per year indefinitely. The required return on the stock is 12% What is the value of the stock today? [pO] What is the capital gains yield this year? [cgy0] What is the dividend yield this year? [dy0] What is the value of the stock in 8 years? [p8] What is the capital gains yield in 10 years? [cgy10] What is the dividend yield in 13 years? (dy 13 ) What is the value of the stock in 3 years? [p3] What is the dividend yield in 3 years? [dy 3 | What is the capital gains yield in 3 years? [cgy3]

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