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Question 2 20 pts 2. Please use your expertise to solve the following stock valuation...

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Question 2 20 pts 2. Please use your expertise to solve the following stock valuation questions (a) The dividend yield on Clayton's Metals common stock is 2.3 percent. The company just paid a $1.5 annual dividend and announced plans to pay $1.55 next year. The dividend growth rate is expected to remain constant at the current level. 1. What is the capital gain yield on this stock?(4pt.) Ji. What is the required rate of return on this stock?(4pt.) Fi. What is the market price of this stock?(4pt.) ) Beatrice Markets is expecting a period of intense growth and has decided to retain more of its earnings to help ance that growth. As a result, it is going to reduce its annual dividend by 10 percent a year for the next 2 years. Eer that, it will increase dividend by 5% forever. The company just paid $3 as the annual dividend per share. What market value of this stock if the required rate of return is 14.5 percent? (8pt.) IU A - A - I E3311 x in TL 12pt P aragraph

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