Question
A stock's current price is $40. The dividends are expected to grow at 4% forever, and investors require a 10% return. What is the dividend
A stock's current price is $40. The dividends are expected to grow at 4% forever, and investors require a 10% return. What is the dividend yield of the stock under the discounted dividend model?
A. 10%
B. 4%
C. 6%
D. 14%
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Quantitative Financial Risk Management
Authors: Constantin Zopounidis, Emilios Galariotis
1st Edition
1118738187, 978-1118738184
