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    Capital gains yield and dividend yield

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    Conner Corporation has a stock price of $32.35 per share. The last dividend was $3.42 (i.e., Do = $3.42). The long-run growth rate for the company is a constant 7 percent. What is the company's capital gains yield and dividend yield?

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    Conner Corporation has a stock price of $32.35 per share. The last dividend was $3.42 (i.e., Do = $3.42). The long-run growth rate for the company is a constant 7 percent. What is the company's capital gains yield and dividend yield?

    Div0 = $3.42
    growth rate = g= 7%
    Therefore,
    Dividend for next year= Div1 ...

    Solution Summary

    Capital gains yield and dividend yield have been calculated using the data on dividends, long-run growth rate and stock price and employing Dividend Discount (Constant Growth) Model.

    $2.19

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