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Home / Questions / You buy a share of Bavarian Auto Parts Corp stock for $3344 You expect it to pay dividends...

You buy a share of Bavarian Auto Parts Corp stock for $3344 You expect it to pay dividends of $301 $3311 and $36421 in Years 1 2 and 3 respectively and you expect to sell it at a price of

You buy a share of Bavarian Auto Parts Corp. stock for $33.44. You expect it to pay dividends of $3.01, $3.311, and $3.6421 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $44.51 at the end of 3 years. a. Calculate the growth rate in dividends. b. Calculate the expected dividend yield. c. Assuming that the calculated growth rate is expected to continue, what is this stock s expected total rate of return?
 

May 26 2020 View more View Less

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