Write down the components of total return in terms of dividend-01232
This subjective question is related to the book/course
vu eng101 English Comprehension.
It can also be found in
vu eng101 Mid Term Solved Past Paper No. 1.
Question 1: Write down the components of total return in terms of dividend growth model.
Answer:
R = D1 /P0 + g
This tells us that the total return, R, has two components D1/P0 is called the Dividend Yield. Because this is calculated as the expected cash dividend by the current price, it is conceptually similar to the current yield on a bond Growth rate, g, is also the rate at which the stock price grows. So it can be interpreted as capital gains yield
