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Beta Company will pay an annual dividend of $1.75 per share next year and currently sells for $35 a share based on a market rate of return of 12.5 percent. What is the capital gains yield? A. 5.0 percent B. 7.5 percent C. 6.2 percent D. 8.4 percent

Beta Company will pay an annual dividend of $1.75 per share next year and currently sells for $35 a share based on a market rate of return of 12.5 percent. What is the capital gains yield? A. 5.0 percent B. 7.5 percent C. 6.2 percent D. 8.4 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 3P
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Beta Company will pay an annual dividend of $1.75 per share next year and currently sells for $35 a share based on a market rate of return of 12.5 percent. What is the capital gains yield? A. 5.0 percent B. 7.5 percent C. 6.2 percent D. 8.4 percent
Transcribed Image Text:Beta Company will pay an annual dividend of $1.75 per share next year and currently sells for $35 a share based on a market rate of return of 12.5 percent. What is the capital gains yield? A. 5.0 percent B. 7.5 percent C. 6.2 percent D. 8.4 percent
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