Question
The next dividend payment by Im, Incorporated, will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever.
The next dividend payment by Im, Incorporated, will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $37 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? (Enter your answer as a percent.)
Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $3.10 next year. The growth rate in dividends for all three companies is 4 percent. The required return for each companys stock is 7 percent, 10 percent, and 13 percent, respectively. What is the stock price for each company? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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