. 2.Dive PYS 402-01 2. Stocks Toy Time's common stock's annual dividend for the next...
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. 2.Dive PYS 402-01 2. Stocks Toy Time's common stock's annual dividend for the next 3 years is expected to be $2. Yue 79-63 Thereafter, the dividend is expected to grow 4% per year. Stocks of Toy Time's risk are expected to earn 11% per year. 4. Y a. Calculate the share price today and at the beginning of each of the next 4 years (Hint: You must first compute the dividend amounts and work backwards) b. Calculate the dividend yield and capital gain yield for each year. e. Does the dividend yield plus the capital gain yield equal to the expected return each year? Briefly explain
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