What is its expected dividend yield for the first year

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Conroy Consulting Corporation (CCC) has been growing at a rate of 18% per year in recent years. This same nonconstant growth rate is expected to last for another 2 years (g0,1 = g1,2 = 18%).

Question: What will CCC's dividend yield and capital gains yield be once its period of nonconstant growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of nonconstant growth, and the calculations are very easy.) Round the answers to two decimal places. Do not round your intermediate computations.

Dividend yield %Capital gains yield %

If D0= $1.90, rs= 10% and gL = 5%, then what is CCC's stock worth today? Round your answer to the nearest cent. Do not round your intermediate computations. Answer below:

$ 50.14

What is its expected dividend yield for the first year? Round the answer to two decimal places. Do not round your intermediate computations. Answer below:

%4.47

What is its capital gains yields for the first year? Round the answer to two decimal places. Do not round your intermediate computations. Answer below:

%5.53

Reference no: EM132466950

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