# Stock Value Calculation

**Question description**

- Assume that XYZ is a
**constant growth company**whose last dividend was $2.00 with the dividend expected to**grow at 6% indefinitely**. Calculate the following: - The expected dividends for the next three years
- The current stock price
- The expected value in one year
- The dividend yield, capital gains yield, and total return during the first year
- Now assume that XYZ is
**expected to grow 30%**for the next three years and then**grow indefinitely at 6%**. Calculate the following: - The current stock price
- The dividend yield and capital gains yield in the first year
- Now assume that XYZ is a
**constant negative growth**company whose last dividend was $2.00 with the dividend**expected to grow at -6% indefinitely**. Calculate the stock price.

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