Find the stock capital gain yield

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A stock is selling for $50 in the market. The company's beta is 1.2, the market risk premium (rM - rF) is 5%, and the risk-free rate is 3%. The most recent dividend paid is D0 = $2 and dividends are expected to grow at a constant rate g. What's the dividend growth rate g for this stock?

Using the information from above, find the stock's capital gain yield.

Reference no: EM132799711

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