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A company plans to make a dividend payment of $1 per share at the end of this year. After that, dividends will decrease by 2%
A company plans to make a dividend payment of $1 per share at the end of this year. After that, dividends will decrease by 2% per year, indefinitely. The required return is 10%. Which of the following statements is true?
The stock will increase in value over time. |
The stock's capital gains yield is negative 2% |
The stock's dividend yield is 9%. |
The stock's capital gains yield is 2% per year. |
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