The next dividend payment by Blue Cheese, Inc., will be $2.16 per share. The div

Question

The next dividend payment by Blue Cheese, Inc., will be $2.16 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. The stock currently sells for $44 per share.

What is the dividend yield? (Round your answer to 2 decimal places.

dividend yield = %?

What is the expected capital gains yield?

capital gains yield = %?

The next dividend payment by Blue Cheese, Inc., will be $2.16 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. The stock currently sells for $44 per share.

Explanation / Answer

Cost of the share=((2.16/44)+0.05)*100 9.91 Dividend Yield % 9.91 Price of Stock=2.16/.0991 21.80 Capital Gain Yield %=(44-21.80)*100/21.80 101.83

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.