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Jamie Trevino
on Dec 20, 2024

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Frazier Enterprises stock is selling for $45 today. You are expecting a dividend of $4 next year and a capital gains yield of 10%. Calculate the price of the stock 1-year from now.

A) $45.00
B) $49.50
C) $52.00
D) $55.50

Capital Gains Yield

The rate of price appreciation on an investment or security, excluding dividends or interest.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

  • Comprehend the fundamentals of the constant growth model in stock valuation.
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Annie WerbeckDec 23, 2024
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