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Tue 1 Mar, 2016 08:40 pm
Company A is planning on increasing its annual dividend by 15% a year for the next 4 years and then decreasing the growth rate to 3.5% per year afterwards. The company just paid its annual dividend in the amount of $0.2 per share. Suppose the required rate of return is 15.5%. What is the dividend yield and capital gains yield today?
I found that the current stock price is 2.49 but I am struggling to come up with the correct answer for the divided yield and capital gains yield.
@Marshmallow,
Ask your teacher... I don't do homework for others.