BritMarts Return. Since its listing last year on the FTSE 100, the market value of BritMart rose

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BritMart’s Return. Since its listing last year on the FTSE 100, the market value of BritMart rose from £21 to £23.5. For each of the following cases calculate the rate of return, distinguishing the dividend yield from the capital gain:

a. BritMart pays no dividend.

b. BritMart decides to pay a dividend of £0.85 per share.

c. BritMart paid the dividend, but the total return to the shareholder is separated into the dividend yield and the capital gain.

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Multinational Business Finance

ISBN: 9781292097879

14th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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