If D1 = $1.50, g (which is constant) = 7.0%, and P0 = $56, what is...

Question

Question

If D1 = $1.50, g (which is constant) = 7.0%, and P0 = $56, what is...

If D₁ = $1.50, g (which is constant) = 7.0%, and P₀ = $56, what is the stock's expected capital gains yield for the coming year?

Select the correct answer.

a. 7.38%

b. 7.76%

c. 8.14%

d. 6.62%

e. 7.00%

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

capital gains yeild is the gain that you get by selling the stock.So, apparently it is the rate of change of stock price.Since it is given that the growth rate as 7%, capital gains yeild is also the same

ans) e) 7.00%

Add a comment

Answer 2

Similar Homework Help Questions

If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is...

If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is the stock's expected capital gains yield for the coming year? Answer A. 6.50% B. 6.83% C. 7.17% D. 7.52% E. 7.90%
If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $24, what is...

If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $24, what is the stock's expected dividend yield for the coming year?
If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $22.00, what is...

If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $22.00, what is the stock’s expected dividend yield for the coming year?

2. If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what...

2. If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what is the stock’s expected dividend yield for the coming year? What is the expected total return for the coming year?
If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what is...

If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what is the stock’s expected dividend yield for the coming year? Show solution.
If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $54, then what...

If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $54, then what is the stock's expected dividend yield for the coming year? a. 4.31% b. 4.23% c. 3.75% d. 3.45% e. 5.05%

If D1 = $1.50.8 (which is constant) = 254, and Po = $56, then what is...

If D1 = $1.50.8 (which is constant) = 254, and Po = $56, then what is the stocks expected capital gains yveld for the coming year 03.08% O 1.95% 02.98% 2.50% 2.83%
Question 11 If D1 = $1.25, g (which is constant) = 5.5%, and Po = $36....

Question 11 If D1 = $1.25, g (which is constant) = 5.5%, and Po = $36. then what is the stock's expected total return for the coming year? 7.99% 7.00% 7.54% 8.88% 8.97% • Previous Next
If D0= $1.75, g (which is constant) = 5.5%, and P0= $44, what is the stock’s...

If D0= $1.75, g (which is constant) = 5.5%, and P0= $44, what is the stock’s expected dividend yield for the coming year?

If D1 = $1.25,8 (which is constant) = 4.7%, and Po = $30.00, then what is...

If D1 = $1.25,8 (which is constant) = 4.7%, and Po = $30.00, then what is the stock's expected dividend yield for the coming year? 4.17% @ 3.25% 4.13% 3.17%

If D1 = $1.50, g (which is constant) = 7.0%, and P0 = $56, what is...

Homework Answers

Add Answer to:
If D1 = $1.50, g (which is constant) = 7.0%, and P0 = $56, what is...

Post as a guest

Earn Coins

If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is...

If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $24, what is...

If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $22.00, what is...

2. If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what...

If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what is...

If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $54, then what...

If D1 = $1.50.8 (which is constant) = 254, and Po = $56, then what is...

Question 11 If D1 = $1.25, g (which is constant) = 5.5%, and Po = $36....

If D0= $1.75, g (which is constant) = 5.5%, and P0= $44, what is the stock’s...

If D1 = $1.25,8 (which is constant) = 4.7%, and Po = $30.00, then what is...

If D1 = $1.50, g (which is constant) = 7.0%, and P0 = $56, what is...

Homework Answers

Add Answer to: If D1 = $1.50, g (which is constant) = 7.0%, and P0 = $56, what is...

Post as a guest

Earn Coins

Add Answer to:
If D1 = $1.50, g (which is constant) = 7.0%, and P0 = $56, what is...