Question: 3 The next dividend payment by Zone, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent

3 The next dividend payment by Zone, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $37 per share. 10 points a. What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the expected capital gains yield? (Do not round intermediate calculations and enter your answer as a percent.) eBook a. Dividend yield b. Capital gains yield % % Print References
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
