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Example 2: Suppose an investor buys 1 share of Hypo, Inc. and expects to receive a cash dividend of $3 at the end of one
Example 2: Suppose an investor buys 1 share of Hypo, Inc. and expects to receive a cash dividend of $3 at the end of one year and to sell it in one year for $81. We determined that at a current price of $75, an investor would earn 12% on her investment. What dividend yield and capital gain yield would she earn? Example 2: Suppose an investor buys 1 share of Hypo, Inc. and expects to receive a cash dividend of $3 at the end of one year and to sell it in one year for $81. We determined that at a current price of $75, an investor would earn 12% on her investment. What dividend yield and capital gain yield would she earn
Example 2: Suppose an investor buys 1 share of Hypo, Inc. and expects to receive a cash dividend of $3 at the end of one year and to sell it in one year for $81. We determined that at a current price of $75, an investor would earn 12% on her investment. What dividend yield and capital gain yield would she earn?
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