Question: Lets say a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3 years, and, after
Lets say a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3 years, and, after that, the dividends are expected to grow at a constant rate of 6% per year forever. The stock's required return is 14%. Find the capital gain yield (rounded to the nearest percent) during the first year.
Question 10 options:
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| 6% |
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| 8% |
|
| 9% |
|
| 14% |
Lets say a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3 years, and, after that, the dividends are expected to grow at a constant rate of 6% per year forever. The stock's required return is 14%. Find the dividend yield during the seventh year.
Question 11 options:
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| 6% |
|
| 14% |
|
| 8% |
|
| 9% |
I understand that you must answer 1 question, however for my previous question, the answer was copied and pasted from another page. That is why I greatly appreciate if you can answer two of the questions, I will greatly appreciate thanks.
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