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You expect a share of stock to pay dividends of $1.00, 1.25, and 1.50 in each of the next 3 years. You believe the stock will sell for $20 at the end of the third years.

a. What is the stock price if the discount rate (required return) for the stock is 10%?

b. What is the dividend yield?

Basic Finance, Finance

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  • Reference No.:- M941748

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