Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Damell Nike's next dividend is $7.10 and is trading at $50.52 per share. You think the dividend will grow by 4.8% annually. What is the

Damell\ Nike's next dividend is

$7.10

and is trading at

$50.52

per share. You think the dividend will grow by

4.8%

annually.\ What is the dividend yield in this scenario? (Enter as a percentage rounded to 1 decimal.

10.5%

should be entered as 10.5 ).\ Kshiti Khanna\ Correct!\ Lamell\ What about capital gains yield? (Enter as a percentage rounded to 1 decimal.

10.5%

should be entered as 10.5 .)\ Correct - this is the expected dividend growth rate.\ Kehit Khanna:\ So that would mean the total retum is:

image text in transcribed
Nike's next dividend is $7.10 and is trading at $50.52 per share. You think the dividend will grow by 4.8% annually. What is the dividend yield in this scenario? (Enter as a percentage rounded to 1 decimal. 10.5% should be entered as 10.5.) Cameil Whet about capital gains yield? (Enter as a percentage rounded to 1 decimal. 10.5% should be entered as 10.5 .)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Validation Of Risk Models

Authors: S. Scandizzo

1st Edition

1137436956, 978-1137436955

More Books

Students also viewed these Finance questions

Question

(a) Graph the function f(x) = e x2, 2 Answered: 1 week ago

Answered: 1 week ago

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

2. Define the grand narrative.

Answered: 1 week ago