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Problem:

The next dividend payment by Blue Cheese, Inc., will be $2.16 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. The stock currently sells for $44 per share.

Required:

Question 1: What is the dividend yield?

Question 2: What is the expected capital gains yield?

Note: Provide support for your underlying principle.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91167748

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