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What will be the dividend yield for the first year

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Reference no: EM133002091

You have the following data regarding a share of stock in a particular firm:

  1. The dividend at the end of the current year is expected to be $5.64/share
  2. The dividend is expected to grow at a constant rate forever
  3. The dividend growth rate is 7.77%
  4. Investors in the stock expect a 24.79% total return from investing in the stock

Problem 1: What will be the dividend yield for the first year (t=0 to t=1)?

Reference no: EM133002091

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