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Varigrowth Inc. just paid a dividend of $0.73 (i.e., D0 = $0.73). Such dividend...

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Finance

Varigrowth Inc. just paid a dividend of $0.73 (i.e., D0 = $0.73). Such dividend is expected to grow by 50% per year for the next 3 years, after which it is expected to grow at a long-run rate of 3%. Assuming investors require a 17% return on the stock,

a) What is the price at t=3? $___ (to the nearest cent)

b) What is its price today? $___(to the nearest cent)

c) What is your total rate of return (% to two decimals) if in one year the price is $19.14 and the dividend is $1.16? ___%

What is your dividend yield? ___%

What is your capital gain (loss) yield? ___%

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