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The current market price of ABCD's stock is $30 per share. ABCD just paid a $2...

The current market price of ABCD's stock is $30 per share. ABCD just paid a $2 dividend and its dividend is expected to grow by 5% in the coming year. The required rate of return for ABCD is 15%. What is ABCD's dividend yield and its capital gains yield?

7%; 8%

8%; 7%

5%; 10%

6.7%; 8.3%

10%; 5%

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Answer #1

Дом ме, Do = Dividend Paid just now as $2 limwtu sote (a) e 5. Required rate of return -15% Current market prie - $ 30 per Sh

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