Question
A company will pay a $1.89 per share dividend next year. Investors expect the dividends to maintain a growth rate of 5 percent every year
| A company will pay a $1.89 per share dividend next year. Investors expect the dividends to maintain a growth rate of 5 percent every year forever. The stock currently sells for $38 per share. |
| Calculate the dividend yield. (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Dividend yield | % |
| Calculate the expected capital gains yield. |
| Capital gains yield | % |
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ISE Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
8th International Edition
1265561435, 9781265561437
