What is the value of the stock in eight years

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A company does not plan to pay dividends for the next three years. After that, they will make a fixed dividend payment of $5 per year for 5 years. After that, they will increase the dividend by 1% per year indefinitely. The required return on the stock is 14%.

Question 1: What is the value of the stock today?

Question 2: What is the capital gains yield this year?

Question 3: What is the dividend yield this year?

Question 4: What is the value of the stock in 8 years?

Question 5: What is the dividend yield in 13 years?

Question 6: What is the value of the stock in 3 years?

Question 7: What is the dividend yield in 3 years?

Question 8: What is the capital gains yield in 3 years?

Reference no: EM132904244

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