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
Related questions
Question
What is the capital gain yield?
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT