Calculation of Firms growth Rate and Capital Gains Yield at given dividend options
1. Investors receive a total return of 15% on common stock french friy, this stock is selling for $28.25 a share. What is the Firms growth Rate if the Co plans to pay an annual dividend of $1.70per share next year?
2. Abc co pays an annual dividend of $1.45per share and sells for $35.50per share based on a market rate of return of 13%. What is the Capital Gains Yield?