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Shares of Common Stock of the Timken Co

Question 40

Multiple Choice

Shares of common stock of the Timken Co. offer an expected total return of 16%. The dividend is increasing at a constant 6% per year. What is the capital gain yield?


A) 6.0%
B) 6.6%
C) 10.0%
D) 10.6%
E) 16.0%

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