Titan Resources Inc. will pay an annual dividend of $3.00 per share next year and currently sells for $60 a share based on a market rate of return of 11.50%. What is the capital gains yield? A. 6.50 percent B. 8.00 percent C. 9.50 percent D. 5.17 percent E. 3.75 percent
Titan Resources Inc. will pay an annual dividend of $3.00 per share next year and currently sells for $60 a share based on a market rate of return of 11.50%. What is the capital gains yield? A. 6.50 percent B. 8.00 percent C. 9.50 percent D. 5.17 percent E. 3.75 percent
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 3P
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Transcribed Image Text:Titan Resources Inc. will pay an annual dividend of $3.00
per share next year and currently sells for $60 a share
based on a market rate of return of 11.50%. What is the
capital gains yield?
A. 6.50 percent
B. 8.00 percent
C. 9.50 percent
D. 5.17 percent
E. 3.75 percent
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