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Author Question: Google has just declared a dividend of $2.12 on its common stock. Dividends are paid annually. ... (Read 44 times)

Tirant22

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on: Apr 25, 2021

Question 1

Given the following information, calculate the expected capital gains yield for Chicago Bears Inc.: beta = 0.6; Km = 15%; Krf = 8%; D1 = $2.00: Po =$25.00. Assume the stock is in equilibrium and the exhibits constant growth.
◦ 3.8%
◦ 0%
◦ 8.0%
◦ 4.2%
◦ 12.2%

Question 2

Google has just declared a dividend of $2.12 on its common stock. Dividends are paid annually. Dividends are expected to grow at the rapid pace of 10% for the next 4 years, after which growth is expected to slow to 3% per annum forever. During the rapid growth phase, the required return on this investment will be 20%, and it is expected to drop to 12% when growth slows. What is the current market value of this stock?
◦ $19.73
◦ $23.98
◦ $25.33
◦ $29.43
◦ $74.70
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Tirant22 on Apr 25, 2021

verrinzo

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Tirant22

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

yeungji

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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