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Home Services common stock offers an expected total return of 14.56 percent. The last annual dividend...

Home Services common stock offers an expected total return of 14.56 percent. The last annual dividend was $2.27 a share. Dividends increase at a constant 2.1 percent per year. What is the dividend yield? (Please show work)

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Answer #1

The dividend model says that expected return equals dividend yield plus growth in dividends (all in a percentage).

so, 14.56 = dividend yield + 2.1

dividend yield = 14.56-2.1

=12.46

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Answer #2

Answer is 12.46

answered by: anonymous
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