Question: If D 1 = $1.50, g (which is constant) = 6.80%, and P 0 = $56, what is the stock's expected capital gains yield for

If D1 = $1.50, g (which is constant) = 6.80%, and P0 = $56, what is the stock's expected capital gains yield for the coming year?

Answer

A.

6.80%
B.

7.52%
C.

7.90%
D.

6.83%
E.

7.17%

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