Shares of Common Stock of the Timken Co

question 40

Multiple Choice

Shares of common stock of the Timken Co. offer an expected total return of 16%. The dividend is increasing at a constant 6% per year. What is the capital gain yield?

• A) 6.0%
• B) 6.6%
• C) 10.0%
• D) 10.6%
• E) 16.0%

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