Business, 09.12.2019 06:31 amanda289

Anderson corp just issued a stock dividend of$2.00 yesterday. the company plans on increasing the dividend by 6% per year for the next 5 years. after which, the dividend will grow at 3% forever. the required rate of return is 10%.

a) calculate the current price of the stock

b) calculate what the price of the stock should be in 1 year

c) calculate the dividend yield and capital gains yield during the first year.

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