Question
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per share and sells
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per share and sells for $60. What is the total rate of return on the stock? What are the dividend yield and capital gains yield?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the total rate of return on the stock we need to consider both the dividend yield and t...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
