Which one of the following will increase the current value of a stock? Decrease in the dividend growth rateIncrease in the required returnIncrease in the market rate of returnDecrease in the expected dividend for next yearIncrease in the capital gains yield

Question

Rihanna Rollins

Business

3 October, 16:14

Which one of the following will increase the current value of a stock? Decrease in the dividend growth rateIncrease in the required returnIncrease in the market rate of returnDecrease in the expected dividend for next yearIncrease in the capital gains yield

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Kenzie Smith · Answer 1

If you have an increase in the capital gains yield there will be an increase in the current value of a stock.

A capital gains yield is the percentage of the price that has appreciated on an investment. Appreciated means that the value has gone up on the investment being sold and has resulted in a capital gain. To figure out the capital gain, you can take the selling price from the purchase price and subtract to see the amount of money that was gained on the investment.