Increasing its annual dividend


Problem:

Winter s just declared that it is increasing its annual dividend from $.82 a share to $.85 a share. If the stock price should remain constant, then:

a. the capital gains yield would decrease.

b. the capital gains yield would increase.

c. the dividend yield would remain constant.

d. the dividend yield would increase.

Neither the capital gains yield nor the dividend yield would change.

Explain comprehensively and show all workings.

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Finance Basics: Increasing its annual dividend
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