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A company has just paid a dividend of 3.68$. Its discount rate is 11.2%, and the...

A company has just paid a dividend of 3.68$. Its discount rate is 11.2%, and the expected perpetual growth rate is 4.2%. What is the stock's Capital Gain Yield?

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Answer #1

capital gain yield = required rate - dividend yield 7.00% (11.2%-4.2%]

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