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    Capital Gains Yield

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    A company just paid an annual dividend of $2.25 per share. The same company has a policy whereby it increases its dividend by 2 percent annually. What is the computation for the capital gains yield if the current stock price is $31 a share?

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    Capital Gains Yield
    A company just paid an annual dividend of $2.25 per share. The same company has a policy whereby it increases its dividend by 2 ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate the capital gains yield of the stock.

    $2.19

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