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What is the expected dividend at year 2

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Hamilton Landscaping's dividend growth rate is expected to be 28% in the next year, drop to 18% from Year 1 to Year 2, and drop to a constant 6% for all subsequent years. Hamilton has just paid a dividend of $2.65 and its stock has a required return of 11%. Round answers to 2 decimal places. Enter % answers in percentage form without "%".

1. What is the expected dividend at year 2?

2. What is the horizon value at time 2?

3. What would you be willing to pay for Hamilton's stock price today?

4. What is Hamilton's estimated stock price for year 1?

5. What is your expected dividend yield for the second year (from year 1 to year 2)?

6. What is your expected capital gains yield for the second year (from year 1 to year 2)?

Reference no: EM133114700

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