Question
Question 8 A firm will issue a dividend of $2 the next year(D1=2), the dividend is expected to experience super growth for the next 2
Question 8
A firm will issue a dividend of $2 the next year(D1=2), the dividend is expected to experience super growth for the next 2 years at 30%, then the firm is expected to resume normal growth of 5%. Suppose the cost of the firm is the 15%. What is the capital gains yield for the next year(in percentage)?
| a. 5.12 | ||
| b. 6.79 | ||
| c. 8.21 | ||
| d. 15 | ||
| e. 5 |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
