The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated...

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The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated...

The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $37 per share.

a.	What is the dividend yield?
	What is the expected capital gains yield?

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Answer 1

Answer #1

dividend yield = dividend next year / price per share = 1.88/37

dividend yield = 5.08%

capital gains yield = 4.00%

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Answer 2

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The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated...

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Add Answer to: The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated...

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The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated...