Find the dividend yeild and the capital gains yeild

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Reference no: EM131054845

Assume a constant growth stock. A firm just paid a $1.5 dividend per share (D0=$1.5). Dividends are epected to grow at a 4% rate per year, forever. Investors require a 10% return per year ("r" = 10%). Calculate the components of "r" for year of the following intervals. IMPORTANT: Show ALL intermediate calculations

We have to find the dividend yeild and the capital gains yeild for the following intervals:

T3 - T4 -AND- T8 - T9

Reference no: EM131054845

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