A stock is expected to pay a dividend next year of $1.8. The dividend amount is expected to grow at an annual rate of 6.0% indefinitely. Assuming a required return on the stock of 8.5% in the future, the dividend yield on the stock is________ _%. Margin of error for correct responses: +/- .05 Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in
A stock is expected to pay a dividend next year of $1.8. The dividend amount is expected to grow at an annual rate of 6.0% indefinitely. Assuming a required return on the stock of 8.5% in the future, the dividend yield on the stock is________ _%. Margin of error for correct responses: +/- .05 Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in
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
Problem 1PS
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Help me please get the answer thanks sir
![A stock is expected to pay a dividend next year of $1.8. The dividend
amount is expected to grow at an annual rate of 6.0% indefinitely.
Assuming a required return on the stock of 8.5% in the future, the
dividend yield on the stock is__________%.
Margin of error for correct responses: +/- .05
Rounding and Formatting instructions:
Do not enter dollar signs, percent signs, commas, X, or any words in
your response. Do not round any intermediate work, but round your
*final response to 2 decimal places (example: if your answer is
12.3456, 12.3456%, or $12.3456, you should enter 12.35).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2fc0e30b-31cd-4663-8b57-feb6f72497bc%2F3048414f-acb8-4912-9422-5bbe42b040d0%2F0870xlls_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A stock is expected to pay a dividend next year of $1.8. The dividend
amount is expected to grow at an annual rate of 6.0% indefinitely.
Assuming a required return on the stock of 8.5% in the future, the
dividend yield on the stock is__________%.
Margin of error for correct responses: +/- .05
Rounding and Formatting instructions:
Do not enter dollar signs, percent signs, commas, X, or any words in
your response. Do not round any intermediate work, but round your
*final response to 2 decimal places (example: if your answer is
12.3456, 12.3456%, or $12.3456, you should enter 12.35).
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