Dividend yield and capital gain rate

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Suppose you expect loblaw company to pay an annual dividend of $0.56 per share in the coming year and to trade $45.50 per share at the end of the year. If investments with equivalent risk to lablaw's stock have an expected return of 6.8%

1. What is the most you would pay today for lob law's stock?

2. What dividend yield and capital gain rate would you expect at this price?

Reference no: EM131419684

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