What is the firm expected dividend stream over next years

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Question - Assume that Bon Temps is a constant growth company whose last dividend (which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 4% rate.

1. What is the firm's expected dividend stream over the next 3 years?

2. What is its current stock price?

3. What is the stock's expected value 1 year from now?

4. What are the expected dividend yield, capital gains yield, and total return during the first year?

5. Now assume that the stock is currently selling at $40.00. What is its expected rate of return?

Reference no: EM133152509

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