Question: Question 4 : [ 4 credits ] Consider two different stocks that have a required return of 2 0 percent and a most recent dividend
Question : credits
Consider two different stocks that have a required return of percent and a most recent dividend of $ per share. Stock A is expected to maintain constant growth rates in dividends for the foreseeable future of percent. Stock B is a growth stock that will increase its dividend by percent for the next two years and then maintain a constant percent growth rate thereafter.
A What is the dividend yield for stock A and stock B credits
B What is the expected capital gains yield for stock A and stock B credits
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