Calculated growth rate is expected continue dividend yield

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Reference no: EM13731336

Buy shares stock for $23.10. Expecting it to pay dividends of $1.09, 1.16, and 1.2345 in years 1,2, and 3 expecting to sell it at price of 30.82 at the end of three years. Calculate the growth rate in dividends? Calculate the expected dividend yield and assuming that the calculated growth rate is expected to continue add the dividend yield to expected growth rate to obtain the expected total rate of return for stock?

Reference no: EM13731336

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