Lucus Laboratories' last dividend was $1.50. Its current equilibriuem stock price is $15.75 and is expected to grow at a constant 5 percent. If the stockholders' required rate of return is 15 percent,...


Lucus Laboratories' last dividend was $1.50. Its current equilibriuem stock price is $15.75 and is<br>expected to grow at a constant 5 percent. If the stockholders' required rate of return is 15 percent,<br>what is the expected dividend yield and expected capital gains yield for the coming year?<br>Select one:<br>a. Expected dividend yield 15%; Expected capital gains yield 0%<br>b. Expected divided yield 10%; Expected capital gains yield 5%<br>c. Expected dividend yields 5%: Expected capital gains yield 10%<br>d. Expected dividend yield 10%; Expected capital gains yield 15%<br>

Extracted text: Lucus Laboratories' last dividend was $1.50. Its current equilibriuem stock price is $15.75 and is expected to grow at a constant 5 percent. If the stockholders' required rate of return is 15 percent, what is the expected dividend yield and expected capital gains yield for the coming year? Select one: a. Expected dividend yield 15%; Expected capital gains yield 0% b. Expected divided yield 10%; Expected capital gains yield 5% c. Expected dividend yields 5%: Expected capital gains yield 10% d. Expected dividend yield 10%; Expected capital gains yield 15%

Jun 11, 2022
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