What is the dividend yield and expected capital gains yield

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Question 1: Superstar Corporation has calculated their required rate of return on their common stock should be 15%. Superstar paid a dividend of $2.50 today and expects the dividend to grow by 21% for the next two years and 18% for the following two years and settling at a constant growth rate of 7% thereafter. What is a share of Superstar stock worth today? What is the dividend yield and expected capital gains yield?

Reference no: EM132518217

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