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Question: Company x is expected to pay an end-of-year dividend of $5 a share on its common stock. After the dividend payment the stock is expected to sell at $110 per share. The required rate of return on the common stock is 15%. Then, calculate the current price of the stock. Also calculate the dividend yield and capital gains yield for the stock.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92797273

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