Given the Following Information, Calculate the Expected Capital Gains Yield

question 49

Multiple Choice

Given the following information, calculate the expected capital gains yield for Chicago Bears Inc.: beta = 0.6; Km = 15%; Krf = 8%; D1 = $2.00: Po =$25.00. Assume the stock is in equilibrium and the exhibits constant growth.

• A)3.8%
• B)0%
• C)8.0%
• D)4.2%
• E)12.2%

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An explicit guarantee by a seller regarding the condition, quality, or performance of the product being sold.

Consumer Good

Any tangible commodity produced and subsequently purchased to satisfy the current wants and perceived needs of the buyer.

Warranty Of Merchantability

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A legal concept that guarantees a product will meet certain minimum standards of quality and functionality implied by law, even if not expressly stated.