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The required rate of return of Cathay Pacific is 6%. It just announced a $0.64 dividend to be paid next year and the share price
The required rate of return of Cathay Pacific is 6%. It just announced a $0.64 dividend to be paid next year and the share price is quoted on stock exchange as $16. Assume the company has constant dividend growth, what is the capital gain yield (i.e., the percentage growth of stock price between this and next year) of Cathay Pacific? A. 1.92% B. 2% C. 2.24% D. 2.52% E. not enough information to
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