Suppose we observe a stock selling for $120 per share. The next dividend will be $1...
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Suppose we observe a stock selling for $120 per share. The next dividend will be $1 per share, and you think the dividend will grow at 5 percent per year forever. What is the capital gains yield? 20 5% 5 0.83% Suppose we observe a stock selling for $120 per share. The next dividend will be $1 per share, and you think the dividend will grow at 5 percent per year forever. What is the capital gains yield? 20 5% 5 0.83%
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