Calculate the expected capital gains yield

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Question: The next dividend payment by Dizzle, Inc., will be $2.55 per share. The dividends are anticipated to maintain a growth rate of 6 percent, forever. Assume the stock currently sells for $48.70 per share.

What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What is the expected capital gains yield?

Reference no: EM131796657

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