the dividend yield on the stock is %.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A stock is expected to pay a dividend next year of $2.1. The dividend amount is
expected to grow at an annual rate of 6.9% indefinitely. Assuming a required return
on the stock of 10.8% in the future, the dividend yield on the stock is
%.
Margin of error for correct responses: +/- .05
Rounding and Formatting instructions:
Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do
not round any intermediate work, but round your *final* response to 2 decimal places
(example: if your answer is 12.3456, 12.3456%, or $12.3456, you should enter
12.35).
Transcribed Image Text:A stock is expected to pay a dividend next year of $2.1. The dividend amount is expected to grow at an annual rate of 6.9% indefinitely. Assuming a required return on the stock of 10.8% in the future, the dividend yield on the stock is %. Margin of error for correct responses: +/- .05 Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is 12.3456, 12.3456%, or $12.3456, you should enter 12.35).
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