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What is the firm current stock price

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Question - You are asked to value Sugar Land's common equity. Assume that Houston Inc. is a constant growth company with a required rate of return of 13 percent whose last dividend (D0, which was paid yesterday) was $2.00, and whose dividend is expected to grow indefinitely at a 7 percent rate.

a. What is the firm's expected dividend stream over the next 3 years?

b. What is the firm's current stock price?

c. What is the stock's expected value 1 year from now?

d. What are the expected dividend yield, the capital gains yield, and the total return for Houston Inc. during the first year.

Reference no: EM133046422

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