What is the expected annual capital gain yield for Orange Corp stock, based on the Dividend Discount Model? The company plans to pay an annual dividend of of $5.13 per share in one year. The expected annual growth rate of the dividend is 10.45%, and the required rate of return for the stock is 14.82%. Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34). Answer: Check

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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What is the expected annual capital gain yield for Orange Corp stock, based on the Dividend
Discount Model? The company plans to pay an annual dividend of of $5.13 per share in one
year. The expected annual growth rate of the dividend is 10.45%, and the required rate of
return for the stock is 14.82%. Answer as a percentage, 2 decimal places (e.g., 12.34% as
12.34).
Answer:
Check
Transcribed Image Text:What is the expected annual capital gain yield for Orange Corp stock, based on the Dividend Discount Model? The company plans to pay an annual dividend of of $5.13 per share in one year. The expected annual growth rate of the dividend is 10.45%, and the required rate of return for the stock is 14.82%. Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34). Answer: Check
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