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ABC Corporation just paid a dividend of $ 2.00 per share. A Wall Street Analyst predicts that the current dividend is likely to increase at
ABC Corporation just paid a dividend of $ 2.00 per share. A Wall Street Analyst predicts that the current dividend is likely to increase at constant rate of 8% per year for indefinite period. An investor wants to make a minimum return of 12% by investing in Shares of ABC. If the investor sells these shares after one year, the investor's capital gain yield % would be:
6.00% | ||
8.00% | ||
12.00% | ||
| ||
13.00% | ||
20.00% |
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