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New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.50 per share exactly 5 years from today.

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New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.50 per share exactly 5 years from today. After that the dividends are expected to grow at 2.7 percent forever. The required retum is 10.5 percent Which of the following is true about the stock dividend yleld and CG yield? Multiple Choice Both stock's dividend yieldand the capital gain yield should rise after 5 years Next years capital gain yield would be expected to be higher than in five years, the evidents pels neat year wit be lower than in five years The stock dividend yield should foil and the capital gole yold should rise oftet 5 years Both och dividend yotend the capital and should stay constant for the next 20 years fottono Both stocks dividend oldand the capital gain yield should fol sher years New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.50 per share exactly 5 years from today. After that the dividends are expected to grow at 2.7 percent forever. The required retum is 10.5 percent Which of the following is true about the stock dividend yleld and CG yield? Multiple Choice Both stock's dividend yieldand the capital gain yield should rise after 5 years Next years capital gain yield would be expected to be higher than in five years, the evidents pels neat year wit be lower than in five years The stock dividend yield should foil and the capital gole yold should rise oftet 5 years Both och dividend yotend the capital and should stay constant for the next 20 years fottono Both stocks dividend oldand the capital gain yield should fol sher years

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