JUJU's dividend next year is expected to be $5.50. It is trading at $45 and is expected to grow at 4% per year. What is JUJU's dividend yield and capital gain?
A) 2.5%; 6%
B) 12.22%; 4%
C) 4%; 12.22%
D) 6%; 2.5%

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the dividend divided by the stock price: $5.50 / $45 = 12.22%. The capital gain is the growth rate, which is 4%.

JUJU's Dividend Next Year Is Expected to Be $5