In: Finance
f D0 = $3.55, g (which is constant) = 2.32%, and P0 = $55, what is the stock's expected dividend yield for the coming year?
D0 = $ 3.55
g = 2.32%
P0 = $ 55
Expected Dividend Yield for the coming year = D0*(1+g)/ P0 = 3.55*(1+2.32%)/ 55 = 6.604%