What is the capital gains yield of a constant growth stock with an expected growth rate...
What is the capital gains yield of a constant growth stock with an expected growth rate of 0.03. The stock just paid a dividend of $5.13 and according to the Capital Asset Pricing Model the stock should return 0.03?
Homework Answers
Capital gains yield will be equal to the growth rate of the company.
Hence capital gains yield is equal to
=0.03
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What is the capital gains yield of a constant growth stock with
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show all work
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