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

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the dividend divided by the stock price: $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