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
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?
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