rate positively ..
Ans 1) | Required rate of return = | |||
Expected dividend next year/price today + Growth rate | ||||
2.16*44+5% | ||||
9.91% | ||||
Ans = | 9.91% | |||
Ans 2) | Dividend yield = Expected dividend next year/Price today | |||
2.04/41 | ||||
4.98% | ||||
Capital gain yield= Required rate - Dividend yield | ||||
First we have to compute the required rate | ||||
required rate= | 2.04/41+7% | |||
11.98% | ||||
capital gain yield | 7.00% | |||
11.98%-4.98% |
Just be sure for part one to divide. While the math is shown with the numbers there is an *. the math is correct but the sign used was incorrect
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Bdm13512002 Thu, Mar 3, 2022 6:56 PM