Question $4$

$0/1$ point

What is the dividend yield of a stock which just paid a dividend of $$6,$ has an expected growth rate of $0\mathrm{.}12$

and a current price of $$36?$

Answer:

$16\mathrm{.}67$

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$\{D{\}}^{**}\frac{1+\{g\}}{P}$

Question $5$

What is the capital gains yield of a constant growth stock with an expected growth rate of $0\mathrm{.}04.$ The stock

just paid a dividend of $$7\mathrm{.}83$ and according to the Capital Asset Pricing Model the stock should return

$0\mathrm{.}07?$

Answer:

$0\mathrm{.}07$

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