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  3. the catsndogsrus company expects a constant growth

The CatsNDogsRUs Company expects a constant growth in earnings and dividends of 4%/year into the...

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Accounting

The CatsNDogsRUs Company expects a constant growth in earnings and dividends of 4%/year into the foreseeable future. It is expected that the next dividend paid to stockholders will be $1.26/share. Currently the market of investors is demanding or requiring 7% on this investment. Show ALL work for full credit. a)(5 points) What is the current value of the stock? b)(2 points) What is the capital gains yield on this stock?

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