Business, 28.06.2021 15:50 Geo777

Hamilton Landscaping's dividend growth rate is expected to be 30% in the next year, drop to 15% from Year 1 to Year 2, and drop to a constant 5% for Year 2 and all subsequent years. Hamilton has just paid a dividend of $2.50 and its stock has a required return of 11%. Required:
a. What is Hamilton's estimated stock price today?
b. What is Hamilton's estimated stock price for Year 1?
c. If you bought the stock at Year 0, what your expected dividend yield and capital gains for the upcoming year?

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Hamilton Landscaping's dividend growth rate is expected to be 30% in the next year, drop to 15% from...

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