Assume a constant growth stock. A firm just paid a $1.5 dividend per share (D0=$1.5). Dividends are epected to grow at a 4% rate per year, forever. Investors require a 10% return per year ("r" = 10%). Calculate the components of "r" for year of the following intervals. IMPORTANT: Show ALL intermediate calculations
We have to find the dividend yeild and the capital gains yeild for the following intervals:
T3 - T4 -AND- T8 - T9