question archive The Tropical Breezes Company expects their dividends and earnings to grow at a constant rate of 4% a year into the foreseeable future

The Tropical Breezes Company expects their dividends and earnings to grow at a constant rate of 4% a year into the foreseeable future

Subject:FinancePrice:2.87 Bought7

The Tropical Breezes Company expects their dividends and earnings to grow at a constant rate of 4% a year into the foreseeable future. Currently the market is requiring a 10% rate of return on their stock. The most recent dividend paid was $2.75/share.

a) What is the current price of the stock?

b) what is the current capital gains yield on this stock?

c) What is the current dividend yield on this stock?

Option 1

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Option 2

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