What is the implied capital gain rate ?? General accounting If investors expect a 14% return on a $50 stock thatpays a dividend of $2.50, what is the impliedcapital gain rate?

Note: Implied capital gain rate refers to the expected return that an investor expects due to change…

Answered: If investors expect a 14% return on a…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section7.4: Valuing Common Stocks

Problem 3ST

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What is the implied capital gain rate ??
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If investors expect a 14% return on a $50 stock that pays a dividend of $2.50, what is the implied capital gain rate?