The required return on the stock

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A company most recently paid a dividend of $1.50. The dividends will increase by 2% per year indefinitely. The required return on the stock is 14%.

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 5 years, dividend yield and capital gains yield that year.

Reference no: EM131989627

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