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I need part B. Can you show how to do it in Excel? You observe a...

I need part B. Can you show how to do it in Excel?

You observe a stock price of $18.75. You expect a dividend growth rate of 5% and the most recent dividend was $1.50.
(a)   What is the required return?
price 18.75
growth rate 0.05
recent dividend 1.5
Required Return 0.082667 0.132667
(b) What is the capital gains yield?
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Answer #1

Price = D1/(ke-g)$18.75 $1.58 5.00% 8.40% [158/18.75] Required return -ke 13.40% [ ) 5% + 8.40% Capital gains yield-

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