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Home / Questions / Investors expect Bae Corporation to pay a dividend of D1 = $1.50 and to grow at a constant

Investors expect Bae Corporation to pay a dividend of D1 = $1.50 and to grow at a constant

Investors expect Bae Corporation to pay a dividend of D1 = $1.50 and to grow at a constant rate of 7% per year. The stock sells at a price of $25. What is Bae's expected capital gains yield?

 

a. 4.0%

 

 

b. 5.0%

 

 

c. 6.0%

 

 

d. 7.0%

 

 

e. 8.0%

 

Dec 04 2019 View more View Less

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