Question
A firm is expected to pay dividends of $3.50 next year. Its current share price is $25and the expected return on the stock is 10%.
A firm is expected to pay dividends of $3.50 next year. Its current share price is $25and the expected return on the stock is 10%. What is the stocks expected capital gains yield if its dividend growth is expected to be constant?
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
