Question

Suppose a stock is trading at $50. If its current dividend $2.40, and constant growth rate...

Suppose a stock is trading at $50. If its current dividend $2.40, and constant growth rate of dividends is 3.5%, what is the stock's expected dividend yield for the coming year?

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Answer #1

Po=50 Do=2.40 g= 3.5% Po . Dividend yield = [Do(1+2) 7X100 = 62.40X1-035x100 50 = 4.97 %

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