Growth inc just paid a 1 dividend dividends are expected to


Growth Inc. just paid a $1 dividend. Dividends are expected to grow 75% per year, for the next two years, after which they are expected to grow by 5% indefinitely. a. If investors require a 15% return, what is the price of Growth Inc.'s stock today? b. What is your realized return if one year from now you receive a dividend of $1.50 and the price is $25. c. In part b, what is your dividend yield? What is your capital gain (loss) yield?

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Financial Management: Growth inc just paid a 1 dividend dividends are expected to
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