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the dividend yield and capital gain yield over the first year?

the dividend yield and capital gain yield over the first year?

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 18MC
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Rand Corporation has a diviidend growth rate of 5% per year into the foreseeable future. The next dividend rate will be $3.50. If Rand's required return is 13%, what is the dividend yield and capital gain yield over the first year? D.Y.; 13% C.G.: 5% D.Y.; 5% C.G.: 8% D.Y.; 8% C.G.: 5% D.Y.; 5% C.G.: 13%
Transcribed Image Text:Rand Corporation has a diviidend growth rate of 5% per year into the foreseeable future. The next dividend rate will be $3.50. If Rand's required return is 13%, what is the dividend yield and capital gain yield over the first year? D.Y.; 13% C.G.: 5% D.Y.; 5% C.G.: 8% D.Y.; 8% C.G.: 5% D.Y.; 5% C.G.: 13%
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