What are its expected dividend yield and capital gains

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Question - SDL Corp.'s growth rate is expected to stand at 40% for the next two years, then to decline to a sustainable growth rate of 5%. If the most recent dividend paid is $2.00 and required rate of return is 15%, what is its stock worth today? Based on the calculated stock worth, what are its expected dividend yield and capital gains during the first year & second year?

Reference no: EM132964013

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