Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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What is the expected capital gains yield?

The next dividend payment by Wyatt, Inc., will be $3.35 per share. The dividends are
anticipated to maintain a growth rate of 7.50 percent, forever. Assume the stock currently
sells for $50.30 per share.
Requirement 1:
What is the dividend yield? (Do not round Intermediate calculations. Round your
answer to 2 decimal places (e.g., 32.16).)
Dividend yield
Requirement 2:
6.66%
What is the expected capital gains yield? (Do not round Intermediate calculations.
Round your answer to 2 decimal places (e.g., 32.16).)
Capital gains
yield
93.35%
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Transcribed Image Text:The next dividend payment by Wyatt, Inc., will be $3.35 per share. The dividends are anticipated to maintain a growth rate of 7.50 percent, forever. Assume the stock currently sells for $50.30 per share. Requirement 1: What is the dividend yield? (Do not round Intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Dividend yield Requirement 2: 6.66% What is the expected capital gains yield? (Do not round Intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Capital gains yield 93.35%
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