Dividends and Dividend Policy

= 4/40 = .10 = 10%. 2. dividend yield = 2/40 = .05 = 5%. The dividend yield is unaffected; it is based on the initial price, not the final price. ... would incorrectly suggest that the Costaguanan real rate was higher than the Canadian real rate. The approximation is valid only for low rates. 5. We use the relationship (with all rates expressed ... ................
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