In: Finance
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
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.