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Old 03-01-2016, 10:44 PM
cupcakehobo cupcakehobo is offline
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Default Dividend Yield and Capital Gains Yield Question

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?

So I am having trouble with coming up with the right answer for this problem. I found that the current stock price is $2.49 (or at least I think it is) but I cannot seem to figure out the dividend yield and capital gains yield. Any help would be greatly appreciated! (:
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Old 03-09-2016, 11:09 AM
coeywong88 coeywong88 is offline
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Default Re: Dividend Yield and Capital Gains Yield Question

er....hope somebody help you!
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