Calculate the dividend yield for the stock

Reference no: EM131959616

Question: Company x is expected to pay an end-of-year dividend of $5 a share on its common stock. After the dividend payment the stock is expected to sell at $110 per share. The required rate of return on the common stock is 15%. Then, calculate the current price of the stock. Also calculate the dividend yield and capital gains yield for the stock.

Reference no: EM131959616

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