A stock recent dividend paid was $3.00 a share. Due to negative industry growth, the...
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- A stock recent dividend paid was $3.00 a share. Due to negative industry growth, the dividend is expected to decrease 3 percent a year forever. The companys beta is 1.5, risk free rate is 1% and risk premium for market portfolio is 8 percent. What is this stock dividend yield in six years from now? Please show your formula and calculations. (4 points)
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