- Assume that XYZ is a constant growth company whose last dividend was $2.00 with the dividend expected to grow at 6% indefinitely. Calculate the following:
- The expected dividends for the next three years
- The current stock price
- The expected value in one year
- The dividend yield, capital gains yield, and total return during the first year
- Now assume that XYZ is expected to grow 30% for the next three years and then grow indefinitely at 6%. Calculate the following:
- The current stock price
- The dividend yield and capital gains yield in the first year
- Now assume that XYZ is a constant negative growth company whose last dividend was $2.00 with the dividend expected to grow at -6% indefinitely. Calculate the stock price.
