What's the stock's market value? Do = 2.00, r = 13%, g = 6%. Constant growth...

 

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What's the stock's market value? Do = 2.00, r = 13%, g = 6%. Constant growth model: D Po= rs-8 What is the stock's market value one year from now, P? D will have been paid, so expected dividends are D, D3, D4 and so on. Thus, D rs - g P = Find the expected dividend yield, capital gains yield, and total return during the first year. Dividend yld = Cap gains yld = = Total return = D Po P-P = Po What's the stock's market value? Do = 2.00, r = 13%, g = 6%. Constant growth model: D Po= rs-8 What is the stock's market value one year from now, P? D will have been paid, so expected dividends are D, D3, D4 and so on. Thus, D rs - g P = Find the expected dividend yield, capital gains yield, and total return during the first year. Dividend yld = Cap gains yld = = Total return = D Po P-P = Po