Solution-What is the dividend yield for each of these four

What is the dividend yield for each of these four equities

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Reference no: EM132768407

Question - Consider four different equities, all of which have a required return of 15 per cent and a most recent dividend of £4.00 per share. Equities W, X and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 per cent, 0 per cent, and -5 per cent per year, respectively. Z is a growth stock that will increase its dividend by 20 per cent for the next two years and then maintain a constant 12 per cent growth rate thereafter

Required -

(a) What is the dividend yield for each of these four equities?

(b) What is the expected capital gains yield?

Reference no: EM132768407

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What is the dividend yield for each of these four equities

Reference no: EM132768407

Reference no: EM132768407

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