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Which of the following statements best describes how a change in a firm's stock price would affect a stock's capital gains yield? The capital gains
Which of the following statements best describes how a change in a firm's stock price would affect a stock's capital gains yield? The capital gains yield on a stock that the investor already owns has a direct relationship with the firm's expected future stock price. The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm's expected future stock price. Walter Utilities is a dividendpaying company and is expected to pay an annual dividend of $ at the end of the year. Its dividend is expected to grow at a constant rate of per year. If Walter's stock currently trades for $ per share, what is the expected rate of return? Which of the following conditions must hold true for the constant growth valuation formula to be useful and give meaningful results? The required rate of return, must be greater than the longrun growth rate. The company's stock cannot be a zero growth stock. The company's growth rate needs to change as the company matures.
Which of the following statements best describes how a change in a firm's stock price would affect a stock's capital gains yield?
The capital gains yield on a stock that the investor already owns has a direct relationship with the firm's expected future stock price.
The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm's expected future stock price.
Walter Utilities is a dividendpaying company and is expected to pay an annual dividend of $ at the end of the year. Its dividend is expected to
grow at a constant rate of per year. If Walter's stock currently trades for $ per share, what is the expected rate of return?
Which of the following conditions must hold true for the constant growth valuation formula to be useful and give meaningful results?
The required rate of return, must be greater than the longrun growth rate.
The company's stock cannot be a zero growth stock.
The company's growth rate needs to change as the company matures.
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