Johnson Corporation has a current price of $22, is expected to pay a dividend of $2 in
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Question:
Johnson Corporation has a current price of $22, is expected to pay a dividend of $2 in one year, and its expected price right after the dividend is $23.
A. What is Johnson’s expected dividend yield?
B. What is Johnson’s expected capital gain rate?
C. What is Johnson’s equity cost of capital (or expected return on its stock)?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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