Company plans to pay dividend

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A company plans to pay a dividend of $2 in 3 years. After that, dividends will grow by 35% for 2 years. After that, dividends will grow by 5% indefinitely. The required return is 11%. Determine each of the figures below and explain how you arrived at your answers.

• Stock price today, dividend yield and capital gains yield this year.

• Stock price in 4 years, dividend yield and capital gains yield that year.

• Stock price in 15 years, dividend yield and capital gains yield that year

Reference no: EM131986938

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