Company Y does not plow back any earnings and is expected to produce a level dividend stream of $5 a share If the current stock price is $40 what is the market capitalization rate ...

Given data can be summarized as follows Dividend in the year1D 5 Current Stock price ...

Company Y does not plow back any earnings and is expected to produce a level dividend stream

Question:

Company Y does not plow back any earnings and is expected to produce a level stream of $5 a share. If the current stock price is $40 what is the market capitalization rate?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...