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

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section7.4: Valuing Common Stocks
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What is the implied capital gain rate ??

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