Assume that Globeworks is a constant growth company whose last dividend was $1.70 and whose dividend...

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Assume that Globeworks is a constant growth company whose lastdividend was $1.70 and whose dividend is expected to growindefinitely at a 5.20% rate. What is the firm's expected dividendstream over the next 4 years? What is its current stock price?Assume a expected rate of return of 8.80%.

a) What are the expected dividend yield, the capital gainsyield, and the total return during the first year?

b) Now assume that the stock is currently selling at $27.50.What is its expected rate of return?

c) What would the stock price be if its dividends were expectedto have a growth rate of 0.60%?

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Assume that Globeworks is a constant growth company whose lastdividend was $1.70 and whose dividend is expected to growindefinitely at a 5.20% rate. What is the firm's expected dividendstream over the next 4 years? What is its current stock price?Assume a expected rate of return of 8.80%.a) What are the expected dividend yield, the capital gainsyield, and the total return during the first year?b) Now assume that the stock is currently selling at $27.50.What is its expected rate of return?c) What would the stock price be if its dividends were expectedto have a growth rate of 0.60%?

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