Question
Anle Corporation has a current stock price of $17.28 and is expected to pay a dividend of $1.15 in one year. Its expected stock price
Anle Corporation has a current stock price of $17.28 and is expected to pay a dividend of $1.15 in one year. Its expected stock price right after paying that dividend is $19.46.
a. What is Anle's equity cost of capital?
b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain?
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Fundamentals Of Institutional Asset Management
Authors: Frank J Fabozzi, Francesco A Fabozzi
1st Edition
9811220034, 9789811220036
