Question: The Wall Street Journal ( WSJ ) lists the current price of James River common stock at $27.00. a. Based on this information, the ValueLine

The Wall Street Journal (WSJ) lists the current price of James River common stock at $27.00.

a. Based on this information, the ValueLine 1995 expected dividend, and the annual rate of dividend change for the growth estimate, what is the companys return on common stock using the constant growth model? What is the expected dividend yield and expected capital gains yield? Explain the difference in the required return estimates from the ValueLine (see question 1a) to the WSJ price data.

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