Calculate the dividend yield and capital gains yield

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Reference no: EM131511549

Company X is expected on an year-end dividend of $5 a share on its common stock. After the dividend to pay required payment the stock is expected to sell at $110 per share. The required rate of return on the common stock is 15%. Then, calculate the current price of the stock. Also calculate the dividend yield and capital gains yield for the stock.

Reference no: EM131511549

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