The common stock of sweet treats has a total return of 11.62 percent, a stock price of $48.20, and recently paid an annual dividend of $2.38. what is the capital gains rate if the company maintains a constant dividend? 6.68 percent 11.17 percent 8.34 percent 4.59 percent 16.56 percent

Respuesta :

We can express the total return as
                                            D1
                                      r =       +g
                                            P0
Therefore0.1162 = $2.38 / $48.20 + g
g = .0668, or 6.68 percent 
RELAXING NOICE
Relax