Question
A stock just paid an annual dividend of $6.4. The dividend is expected to grow by 2% per year for the next 4 years. In
A stock just paid an annual dividend of $6.4. The dividend is expected to grow by 2% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 11 and the payout ratio to be 60%.
The required rate of return is 8%.
What is the expected capital gains yield?
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Financial Accounting For Management
Authors: Paresh Shah
2nd Edition
0198077033, 978-0198077039
