Alpha Minerals will pay an annual dividend of $2.20 per share next year and currently sells for $50 a share based on a market rate of return of 10.92 percent. What is the capital gains yield? A. 7.35 percent B. 7.78 percent C. 9.23 percent D. 6.52 percent E. 4.49 percent
Alpha Minerals will pay an annual dividend of $2.20 per share next year and currently sells for $50 a share based on a market rate of return of 10.92 percent. What is the capital gains yield? A. 7.35 percent B. 7.78 percent C. 9.23 percent D. 6.52 percent E. 4.49 percent
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 3P
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Transcribed Image Text:Alpha Minerals will pay an annual dividend of $2.20 per share
next year and currently sells for $50 a share based on a market
rate of return of 10.92 percent. What is the capital gains yield?
A. 7.35 percent
B. 7.78 percent
C. 9.23 percent
D. 6.52 percent
E. 4.49 percent
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