Which one of the following must equal zero if a firm pays a constant annual dividend?

Group of answer choices

Market value per share

Book value per share

Total return

Capital gains yield

Dividend yield

Solutions

Expert Solution

Ans Capital gains yield

Capital gains yield must equal zero if a firm pays a constant annual dividend. Capital gain yield is the percentage price appreciation on an investment. It is calculated as the increase in price of an investment divided by the original value of the investment.

jeff jeffy answered 2 years ago

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