Llano’s stock is currently selling for $50.00. The expected dividend one year from now is $1.50, and the dividend growth rate is constant at 7%. Assuming the constant dividend growth model is appropriate, what is investor's required rate of return? what is dividend yield? what is the capital gains yield?

a) Can't decide based on the information
b) 10%,7%,7%
c) 10%, 3%, 7%
d) 7%, 7%,7%

correct option is c) 10%, 3%, 7%

Explanation:

given data

currently selling = $50.00

expected dividend = $1.50

dividend growth rate  = 7%

solution

we get here Required return that is express as

Required return = (expected dividend ÷ Current price) + Growth rate  1

put her value and we get

Required return = \frac{1.5}{50} + 0.07

Required return = 10%

and

now we get Dividend yield that is express as

Dividend yield = Dividend ÷ Current price    2

put here value we get

Dividend yield = \frac{1.5}{50}

Dividend yield = 3%

and

Capital gains yield = Growth rate

Capital gains yield  = 7%

so correct option is c) 10%, 3%, 7%

answer; im, thinking it should be (7yrs)///plz check first.good luck

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3