How much will he earn in dollar capital gain

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Question - Allen bought a stock today for XYZ Corp. This stock is expected to pay a dividend of $1.90 next year. This dividend is expected to increase at a constant rate of 3.5% for foreseeable future. The required rate of return is 12%. Allen decides to sell his stock three years from now, how much will he earn in Dollar Capital Gain over this three year period.

Reference no: EM133052602

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