JUJU's dividend next year is expected to be $1.50. It is trading at $45 and is expected to grow at 9 percent per year. What is JUJU's dividend yield and capital gain?
A) 1.5 percent; 6 percent
B) 9 percent; 3.33 percent
C) 3.33 percent; 9 percent
D) 6 percent; 1.5 percent

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the expected dividend divided by the current price, so $1.50 / $45 = 3.33%. The capital gain is the expected growth rate, which is 9%.

JUJU's Dividend Next Year Is Expected to Be $1