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Just today Fawlty Foods Incs common stock paid a $140 annual dividend per share and had a closing price of $21 Assume that the markets required return or capitalization rate for this

Just today, Fawlty Foods, Inc.’s common stock paid a $1.40 annual dividend per share and had a closing price of $21. Assume that the market’s required return, or capitalization rate, for this investment is 12 percent and that dividends are expected to grow at a constant rate forever. a. Calculate the implied growth rate in dividends. b. What is the expected dividend yield? c. What is the expected capital gains yield?
 

Apr 29 2020 View more View Less

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