Suppose we observe that a stock is selling for $40 per share. The next dividend will be

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Suppose we observe that a stock is selling for $40 per share. The next dividend will be $1 per share, and you think the dividend will grow at 12% per year forever.

What is the dividend yield in this case?

The capital gain yield? The total required return?

Related Book For answer-question

Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Posted Date: May 07, 2023 11:43 PM

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Suppose we observe that a stock is selling for $40 per share. The next dividend will be

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The dividend yield is calculated by dividing the annual dividend per share by t... View the full answer

Fundamentals of Investments Valuation and Management

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