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Unformatted text preview: What is the stocks expected dividend yield? At what rate is the price of the stock expected to increase? Solution: g = R - D1/P = 4 x (.03 - .15/7) = 3.43% dividend yield = 4 x .15/7 = 8.57% capital gain yield = g = 3.43%...
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- Fall '07
- Corporate Finance