Question: Please explain why 6.79 is correct. Dont use excel, instead write it/type it out using formulas please. A firm will issue a dividend of $2

Please explain why 6.79 is correct. Dont use excel, instead write it/type it out using formulas please.

A firm will issue a dividend of $2 the next year(D1=2), the dividend is expected to experience super growth for the next 2 years at 30%, then the firm is expected to resume normal growth of 5%. Suppose the cost of the firm is the 15%. What is the capital gains yield for the next year(in percentage)? Answers: 10.00 6.79 8.21 15.00 5.00

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