If D1 = $1

question 35

Multiple Choice

If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is the stock's expected capital gains yield for the coming year?

• A) 6.50%
• B) 6.83%
• C) 7.17%
• D) 7.52%
• E) 7.90%

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