The next dividend payment by Wyatt, Inc., will be $3.35 per share. The dividends are anticipated to maintain a growth rate of 7.50 percent, forever. Assume the stock currently sells for $50.30 per share. Requirement 1: What is the dividend yield? (Do not round Intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Dividend yield Requirement 2: 6.66% What is the expected capital gains yield? (Do not round Intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Capital gains yield 93.35%
The next dividend payment by Wyatt, Inc., will be $3.35 per share. The dividends are anticipated to maintain a growth rate of 7.50 percent, forever. Assume the stock currently sells for $50.30 per share. Requirement 1: What is the dividend yield? (Do not round Intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Dividend yield Requirement 2: 6.66% What is the expected capital gains yield? (Do not round Intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Capital gains yield 93.35%
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
Problem 1PS
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Question
What is the expected
![The next dividend payment by Wyatt, Inc., will be $3.35 per share. The dividends are
anticipated to maintain a growth rate of 7.50 percent, forever. Assume the stock currently
sells for $50.30 per share.
Requirement 1:
What is the dividend yield? (Do not round Intermediate calculations. Round your
answer to 2 decimal places (e.g., 32.16).)
Dividend yield
Requirement 2:
6.66%
What is the expected capital gains yield? (Do not round Intermediate calculations.
Round your answer to 2 decimal places (e.g., 32.16).)
Capital gains
yield
93.35%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9547fa08-c5e7-403b-9b85-e45f160db7da%2F4614e4da-f889-4760-aa1d-fb13b118b9ca%2Fh6ggdrb_processed.png&w=3840&q=75)
Transcribed Image Text:The next dividend payment by Wyatt, Inc., will be $3.35 per share. The dividends are
anticipated to maintain a growth rate of 7.50 percent, forever. Assume the stock currently
sells for $50.30 per share.
Requirement 1:
What is the dividend yield? (Do not round Intermediate calculations. Round your
answer to 2 decimal places (e.g., 32.16).)
Dividend yield
Requirement 2:
6.66%
What is the expected capital gains yield? (Do not round Intermediate calculations.
Round your answer to 2 decimal places (e.g., 32.16).)
Capital gains
yield
93.35%
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