What would you pay for the stock in year two

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Firm pays first dividend ever in year 5 of $2.00. The firm expects growth rate in year 6 to be .20, G7 = .15, G8 = .10 and G9 = .05 which will continue into perpetuity. a) What would you pay for the stock in year 2? b) What is the dividend yield, current yield, and total yield from years 2 - 3 given a required return of 13.5%?

Reference no: EM131074590

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