Chapter 9: Valuing Stocks

Ex. Assume Gilford stock currently trades for $15 per share. One year from today, you expect Gilford to pay a dividend of $0.75 and you expect Gilford’s stock to equal $15.50. What dividend yield, capital gain rate, and total return do you expect on Gilford stock? Dividend yield = .75 15 = .05 Capital gain rate = 15.50−15 15 = .03333 Total ... ................
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