Lucas Clinic’s last dividend (D0) was $1.50. Its equilibrium stock price is $15.75 and its expected growth rate is a constant 5%. If the stockholders’ required rate of return is 15%, what is the expected dividend yield and expected capital gains yield for the coming year?
The question belongs to Finance and it discusses about calculating the expected dividend yield and expected capital gains yield for the coming year for a company’s stock.
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