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c. What your expected dividend yield and capital gains for the second year (from Year 1 to Year 2)? Why aren't these the same as
c. What your expected dividend yield and capital gains for the second year (from Year 1 to Year 2)? Why aren't these the same as for the first year? 1. Find the expected dividend yield. Dividend yield D2 / Dividend yield = P 1 1 Dividend yield = 2. Find the expected capital gains yield. Use the estimated price for Year 2. Pz. to find the expected gain. Cap. Gain yield (P2-P) 1 P Cap. Gain yield= Cap. Gain yield= Alternatively, the capital gains yield can be calculated by simply subtracting the dividend yield from the total expected return. Cap. Gain yieldExpected returi Dividend yield Cap. Gain yield= Cap. Gain yield- c. What your expected dividend yield and capital gains for the second year (from Year 1 to Year 2)? Why aren't these the same as for the first year? 1. Find the expected dividend yield. Dividend yield D2 / Dividend yield = P 1 1 Dividend yield = 2. Find the expected capital gains yield. Use the estimated price for Year 2. Pz. to find the expected gain. Cap. Gain yield (P2-P) 1 P Cap. Gain yield= Cap. Gain yield= Alternatively, the capital gains yield can be calculated by simply subtracting the dividend yield from the total expected return. Cap. Gain yieldExpected returi Dividend yield Cap. Gain yield= Cap. Gain yield
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