Dividend yield and capital gains yield


Pure Inc. is expected to pay dividends of $3.50, $4.50 and $5.50 over the next three years. The stock is expected to have a value of $40.00 three years from today. If the risk-free rate is 6%., the return on the market is 14% and Pure has a beta of 1.2 a. What is the current value of Pure? b. For the first year, compute the dividend yield and the capital gains yield.

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Finance Basics: Dividend yield and capital gains yield
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