Nbsptechnologys common stock is selling at 30 per share, Ask an Expert

Finance

Technology's common stock is selling at $30 per share today. Southwest just paid a $2 dividend. Its dividend is expected to grow by 5% in the coming year. The required rate of return on Southwest is 15%. Determine the common stock's dividend yield and capital gain yield for the first year.

a. 10%; 5%

b. 7%; 8%

c. 5%; 10%

d. 6.7%; 8.3%

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Category:- Basic Finance
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