PPT Slide
What is the expected dividend and capital gains yields at t = 0? At t = 4?
Div. yield0 = = 11.1%.
CG yield0 = 16.00% - 11.1% = 4.9%.
Div. yield4 = 10%.
CG yield4 = 16% - 10% = 6% = g.
$2.00
$18.07
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