Question
XYZ Corp. just paid a dividend of $0.64. Dividends are expected to grow at a constant rate of 1.3% per year for indefinite future. The
XYZ Corp. just paid a dividend of $0.64. Dividends are expected to grow at a constant rate of 1.3% per year for indefinite future. The required rate of return is 7%. Calculate the following: (a) Price of the stock 5 years from today; (b) Price of the stock today; (c) Dividend Yield and Capital Gains Yield today; (d) Dividend Yield and Capital Gains Yield 5 years from today
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
