Question: How would I find the capital gain yield for the 7th year? Problems 3-5 are based on the following information: Consider a stock that
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How would I find the capital gain yield for the 7th year?
Problems 3-5 are based on the following information: Consider a stock that pays $5 dividends at t=1; $8 at t=2; and $10 at t=3, and, from year t=3 forward, the dividends are expected to grow at a constant rate of 3% per. The required rate of return is 12%
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