Calculate the expected capital gains yield

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Reference no: EM131566401

Ruffin Inc. just paid a dividend of $1.21 per share, and dividends are expected to grow at 7.5% forever. Assuming investors require a 13% rate of return on their investment, calculate the expected capital gains yield. (Enter percentages as decimal and round to 4 decimals)

Reference no: EM131566401

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