What is the value of the stock today

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Problem - 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%.

What is the value of the stock today?    

What is the capital gains yield this year?  

What is the dividend yield this year? 

What is the value of the stock in 8 years?

What is the dividend yield in 13 years? 

What is the value of the stock in 3 years? 

What is the dividend yield in 3 years? 

What is the capital gains yield in 3 years?

Reference no: EM132933500

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