Dividend yield for the stock-fama corp

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The stock of Fama Corp. just paid a dividend of $2.5 today. The company promises that the dividend for next year will be $2.55 next year. And, the dividend growth rate is expected to remain at the current level. Suppose the required rate of return of the stock is 12%.

What is the dividend yield for the stock? ______%

What is the intrinsic value of its stock today?

Reference no: EM132468197

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