Question: Problems 13-15 are based on the following information: In the next 4 years ABC is expected to pay the following stream of dividends: D.-S5, D-$3,
Problems 13-15 are based on the following information: In the next 4 years ABC is expected to pay the following stream of dividends: D.-S5, D-$3, and D3-56. Da=S8 After that the dividends are expected to grow at a constant rate of 5% per year indefinitely. The required rate of return is R=12% Problem 13: Find the current stock price Problem 14: Find the capital gain yield in the first year Problem 15: Find the dividend yield in the 7th year
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