Question
1. Last week, Welch Industries paid their annual dividend of $1.29 on their common stock. The company predicts that the dividend will increase by 2.7%
1. Last week, Welch Industries paid their annual dividend of $1.29 on their common stock. The company predicts that the dividend will increase by 2.7% each year indefinitely.
What is the capital gains yield on this stock if this stock is currently selling for $32.22 per share?
2. Last week, Welch Industries paid their annual dividend of $1.29 on their common stock. The company predicts that the dividend will increase by 3.5% each year indefinitely.
What is the dividend yield on this stock if this stock is currently selling for $31.07 per share?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
