Question
Anle Corporation has a current stock price of $20.00 and is expected to pay a dividend of $1.00 in one year. Its expected stock price
Anle Corporation has a current stock price of
$20.00
and is expected to pay a dividend of
$1.00
in one year. Its expected stock price right after paying that dividend is
$22.00.
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?
a. What is Anle's equity cost of capital?
Anle's equity cost of capital is
nothing%.
(Round to two decimal places.)
b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain?
The dividend yield is
nothing%.
(Round to two decimal places.)The capital gain is
nothing%.
(Round to two decimal places.)
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