What is its expected rate of return

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Reference no: EM132022971

Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 6% rate. (1) What is the firm’s current estimated intrinsic stock price? (2) What is the stock’s expected value 1 year from now? (3) What are the expected dividend yield, the expected capital gains yield, and the expected total return during the first year? (4) Now assume that the stock is currently selling at $30.29. What is its expected rate of return?

Reference no: EM132022971

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