The next dividend payment by Wyatt, Inc., will be $3.15 per share. The dividends

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

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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