A Firm's stock is trading for $50 per share. Next year you expect it to pay a $2 dividend, and dividends have been growing at a 6% rate. a. What rate of return do investors require from this stock? b. What is the dividend yield? c. What is the capital gain yield?
A Firm's stock is trading for $50 per share. Next year you expect it to pay a $2 dividend, and dividends have been growing at a 6% rate. a. What rate of return do investors require from this stock? b. What is the dividend yield? c. What is the capital gain yield?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 16MC
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