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Finance - Finding Dividend Yields and Capital Gain Yields

 
 
Reply 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.
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Type: Question • Score: 0 • Views: 829 • Replies: 1
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Linkat
 
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Reply Wed 2 Mar, 2016 08:27 am
@Marshmallow,
Ask your teacher... I don't do homework for others.
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