Question: This is a multi-part question Assume that Temp Force is a constant growth company whose last dividend (D 0 , which was paid yesterday) was
This is a multi-part question
Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 6% rate.
(1.) What is the firms current stock price?
(2.) What is the stock's expected value 1 year from now?
(3.) What are the expected dividend yield, the capital gains yield, and the total return during the first year?
(4). Now assume that the stock is currently selling at $30.29. What is its expected rate of return?
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