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    Luca Clinic's last dividend was $1.50

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    Luca Clinic's last dividend was $1.50. Its current equilibrium stock price is $15.75, and its expected growth rate is a constant 5 %. If the stockholders' required rate of return is 15%, what is the expected dividend yield and expected capital gains yield for the coming year?

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    https://brainmass.com/business/business-math/luca-clinics-last-dividend-495733

    Solution Preview

    D1 = Do (1 + g) ^ 1 = 1.50 (1 + 0.05) = 1.575
    D2 = Do (1 + g) ^ 2 = 1.50 (1 + 0.05) = ...

    Solution Summary

    The expert examines Luca Clinic's last dividend.

    $2.19