Assume that XYZ is a constant growth company whose last dividend was $2 with the dividend expected to grow 6% indefinitely. Calculate the following: The expected dividends for the next three years. The current stock price. The expected value in one year and The dividend yeild, capital gains yield, and total returnduring the first year.
Umm not sure. I didn't think that there is enough information here to answer all that.
This dividend = $2
next one = $2*1.06=$2.12
next one = $2.12*1.06 = $2.2472
next one = $2.2472*1.06 = $2.382032
This is assuming that the dividends are yearly. In reality they are usually 6 monthly.
I don't think you have given enough information for me to answer the rest. ![]()
Umm not sure. I didn't think that there is enough information here to answer all that.
This dividend = $2
next one = $2*1.06=$2.12
next one = $2.12*1.06 = $2.2472
next one = $2.2472*1.06 = $2.382032
This is assuming that the dividends are yearly. In reality they are usually 6 monthly.
I don't think you have given enough information for me to answer the rest. ![]()