The next dividend payment by Wyatt, Inc., will be $3.15 per share. The dividends
ID: 2775568 • Letter: T
Question
The next dividend payment by Wyatt, Inc., will be $3.15 per share. The dividends are anticipated to maintain a growth rate of 6.50 percent, forever. Assume the stock currently sells for $49.90 per share.
What is the dividend yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
What is the expected capital gains yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
The next dividend payment by Wyatt, Inc., will be $3.15 per share. The dividends are anticipated to maintain a growth rate of 6.50 percent, forever. Assume the stock currently sells for $49.90 per share.
Explanation / Answer
Calculation of Dividend Yield:
Dividend Yield = Dividend / market Price
=3.15 / 49.90
= 0.063126
= 6.31%
Capital gain yield = total yield - Dividend yield
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