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Corporate Finance. Vega Motor Corporation has pulled off a miraculous recovery. Two years ago, it was near bankruptcy.

Corporate Finance.4. Vega Motor Corporation has pulled off a miraculous recovery. Two years ago, it wasnear bankruptcy. Vega has just announced a $1 per share dividend, the first since the crisis hit.Analyst expect an increase to a “normal” $3 as the company competes its recovery over thenext three years. After that, dividend growth is expected to settle down to a moderate longtermgrowth rate of 6 percent. Vega stock is selling at $50 per share. What is the expectedlong-run rate of return from buying the stock at this price? Assume dividends of $1, $2, and$3 for years 1, 2, 3.

Question:Corporate Finance4. Vega Motor Corporation has pulled off a miraculous recovery. Two years ago, it wasnear bankruptcy. Vega has just announced a $1 per share dividend, the first since...
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