What is the firms expected value in one year

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Trusty gets' Lucky Ltd., just paid a dividend of $2.00 per share. The managing director just announced that it is planned to increase dividends at a rate of 6% indefinitely. An appropriate discount rate for this company is 16% per annum.

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

Question ii. What is the firm's current stock price?

Question iii. What is the firm's expected value in one year?

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

Reference no: EM132475013

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