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Estimating the expected rate of return

Atari corporation has a current stock price of of $20 and is expected to pay a dividend of of $1 in one year. its expected stock price right after paying that dividend is $22.

a) What is Atari's expected rate of return?

b) How much of Atari's rate is expected to be satisfied by dividend yield?

c) How much of Atari's rate of return is expected to be satisfied by capital gain?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Estimating the expected rate of return

Reference No:- TGS0675697

Have a Question? (oR Write a Review)

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Solution Preview :

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Reference No:- TGS0675697

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