Calculate dividend yield and expected capital gains yield

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Reference no: EM131867998

Snyder Computer Chips Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next two years, at 13% in the third year, and at a constant rate of 6% thereafter. Snyder's last dividend was $1.15, and the required rate of return on the stock is 12%. a. Calculate the value of the stock today. b. Calculate P1 and P2. c. Calculate the dividend yield and the expected capital gains yield for year 1.

Reference no: EM131867998

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