Assume a corporation has just paid a dividend of $ 1.24 per share. The dividend is expected to grow at a rate of 3.9% per year forever, and the discount rate is 9.3%.
What is the Capital Gains yield of this stock?
Capital gains yield is equal to the growth rate of the corporation.
Hence in this case;Capital gains yield is equal to
=Growth rate
=3.9%
Assume a corporation has just paid a dividend of $ 1.24 per share. The dividend is...
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