Expected dividend stream over the next 3 years

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Problem: Trusty gets' Lucky Ltd., just paid a dividend of $2.00 per share. The managing director just announced that it is planned to increase dividends at a rate of 6% indefinitely. An appropriate discount rate for this company is 16% per annum.

Required:

Question 1: What is the firm's expected dividend stream over the next 3 years?

Question 2: What is the firm's current stock price?

Question 3: What is the firm's expected value in one year?

Question 4: What are the expected dividend yield, capital gains yield and total return during the first year?

Reference no: EM132440542

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