Blue is currently selling for $28 per share. Its next dividend (in one year) is forecasted to

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Blue is currently selling for $28 per share. Its next dividend (in one year) is forecasted to be $1. Immediately after the dividend is paid, you expect the price to be $32.

a. What is its expected dividend yield?

b. What is its expected capital gain rate?

c. What is the equity investors' expected return?

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: Jun 08, 2023 01:53 AM

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Blue is currently selling for $28 per share. Its next dividend (in one year) is forecasted to

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Fundamentals Of Corporate Finance

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