Solved:
Answered by AI, Verified by Human Experts
If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what is the stock's expected dividend yield for the coming year?
If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $26.00, what is the stock's expected dividend yield for the coming year?
Answer:the expected dividend yield is 4.81%Explanation:The computation of the stock expected dividend yield is shown belo:Stock expected dividend yield is= Dividend ÷ Pricewhere,Dividend is $1.25And, the price is $26Now place these values to the above formulaSo, the expected dividend yield is= $1.25 ÷ $26= 4.81%Hencethe expected dividend yield is 4.81%...
Unlock full access for 72 hours, watch your grades skyrocket.
For just $0.99 cents, get access to the powerful quizwhiz chrome extension that automatically solves your homework using AI. Subscription renews at $5.99/week.