Calculate the expected dividend yield

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Reference no: EM132017341

Rainbow Industries, Inc. just paid a dividend of $1 per share of common stock. Analysts expect the company’s dividend to grow 60% the next two years, and then settle into a constant growth rate of 8%. The required rate of return on the company’s stock is 12%. QUESTION: What should be the current price of the company’s stock? Show all these calculations: D1= D2= D3 = P2 = P0 = For the question above, using the numbers you have regarding Rainbow Industries, Inc. QUESTION: Calculate the following: Expected Dividend Yield at P0= Expected Capital Gains Yield at P0=

Reference no: EM132017341

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