Question
The next dividend payment by Hoffman, Inc., will be $3.25 per share. The dividends are anticipated to maintain a growth rate of 7 percent forever.
The next dividend payment by Hoffman, Inc., will be $3.25 per share. The dividends are anticipated to maintain a growth rate of 7 percent forever. Assume the stock currently sells for $50.10 per share. | |
a. | What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | What is the expected capital gains yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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Essentials of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
10th edition
1260013955, 1260013952, 978-1260013955
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