Illustrate what will be the dividend yield today

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Q. Ziggs Corporation will pay a $3.85 per share dividend next year. The company pledges to increase its dividend by 4.75% per year, in perpetuity. If you require a 12% return on your investment, explain how much will you pay for Ziggs' stock today? Explain how many in five years? Illustrate what will be the dividend yield today?

Reference no: EM13102212

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