You expect a share of stock to pay dividends of $2.10, $2.35, and $2.60 in each...

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Finance

You expect a share of stock to pay dividends of $2.10, $2.35,and $2.60 in each of the next 3 years. You believe the stock willsell for $33.00 at the end of the third year.
a. What is the stock price if the discount rate for the stock is20%? (Do not round intermediate calculations. Round your answer to2 decimal places.)
b. What is the dividend yield for year 1? (Do not roundintermediate calculations. Enter your answer as a percent roundedto 2 decimal places.)
c. What will be the dividend yield at the start of year 2? (Donot round intermediate calculations. Enter your answer as a percentrounded to 2 decimal places.)

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a Stock Discount rate 02 Year 0 1 2 3 Cash flow stream 0 21 235 356 Discounting factor 1 12 144 1728 Discounted cash flows project 0 175 1631944 2060185 NPV Sum of discounted cash flows NPV Stock 2398 See Answer

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