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attashe74 [19]
3 years ago
12

Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to c

ontinue for another 3 years. The last dividend paid was $5. The discount rate is 23% and the steady growth rate after 3 years is 2%. a. What is the capital gain in stock price from year 0 to year 1? (Do not round intermediate calculations. Enter your answer as a dollar amount rounded to 3 decimal places.) Capital gain $
b. Calculate the expected rate of return. (Do not round intermediate calculations. Round your answer to the nearest whole percent.) Expected rate of return %
Business
1 answer:
elixir [45]3 years ago
8 0

A.$1.266

B. 24.87%

Explanation: see attached file

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