Answer required parts for a thumbs up!!! The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 20% per year for thenext three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 15% per year.Required:a. What is your estimate of the intrinsic value of a share of the stock?Note: Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places.b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield?Note: Use intermediate values rounded to 2 decimal places. Round your answer to 2 decimal places.c. What do you expect its price to be one year from now?Note: Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places.d-1. What is the implied capital gain?Note: Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places.d-2. Is the implied capital gain consistent with your estimate of the dividend yield and the market capitalization rate?a. Intrinsic value per shareb. Expected dividend yieldc. Expected priced-1. Implied Capital Gaind-2. Is this consistent with the DDM?%

Let's solve each part of the problem step by step:Explanation: a. To find the intrinsic value per…

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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AutoSave Off H Document2 - Word P Search (Alt+Q) Sign in File Design References Mailings Review View Help Grammarly Picture Format P Comments A Share Home Insert Draw Layout P Find - - A A Aa v A = - E - E G Times New Roman v 12 Normal No Spacing Heading 1 Replace = = 1E v Editor Open Grammarly Paste BIU I U v - 2. A - ab x, x' A . A Select v Undo Clipboard a Font Paragraph Styles Editing Editor Grammarly a. At the beginning of the year, Addison Company's assets are $200,000 and its equity is $150,000. During the year, assets increase $80,000 and liabilities increase $46,000. What is the equity at year-end? Assets Liabilities Equity Beginning $ 200,000 = 150,000 Change 80,000 = 46,000 + Ending Page 1 of 1 O words Text Predictions: On * Accessibility: Good to go O Focus 110% 9:58 PM P Type here to search 49°F 3/20/2022 近

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List Paragraph For the... badiya aldujaili BA AutoSave ff Search EN File Home Insert Draw Design Layout References Mailings Review View Help A Share O Comments X Cut - A^ A° Aav A E - E - E E E O Find - Calibri (Body) 11 AaBbCcDc AaBbCcDc AaBbC AABBCCC AaB AAB6CCC AaBbCcDa 自Copy Paste S Replace В IUvab х, х* А I Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em... A Select v Dictate Editor Format Painter Clipboard Font Paragraph Styles Editing Voice Editor 1. 2 4 5 6. 7 If Busby Corporation's variable cost ratio is 0.75, targeted after tax net income is $27,580 (tax rate of 20%), and targeted sales volume in dollars is $219,000 then Busby's total fixed costs are: a. $27,170 b. $71,380 c. $20,275 d. $136,670 e. $129,775 f. $26,350 g. $54,750 Page 3 of 3 331 words English (United States) Focusם 160% 8:28 PM O Type here to search ENG 2/11/2021 (凸) . I . I ..?. . . E • . . L. . . t .. I ..
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