Question
Suppose you expected A company to pay dividends of $0.44 per share next year and trade for $33 per share at end of next year.
Suppose you expected A company to pay dividends of $0.44 per share next year and trade for $33 per share at end of next year. If the cost of equity is 8.5%, what is dividend yield and expected gain rate of A company, respectively
- 1.43 and 7.07
- 1.43 and 8.05
- 1.00 and 8.5
- 1.33 and 8.5
- No answer
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
