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What are dividend yield and capital gains yield

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Woidtke Manufacturing's stock has supernormal growth of 50% for Year 0 to Year 1, 40% for Year 1 to Year 2, 30% for Year 2 to Year 3, 25% for Year 3 to Year 4, and then long-run constant g = 6%.

a. What is the value of this stock, if rs=12% and D0 is $2?

b. What are dividend yield and capital gains yield at t=0?

Reference no: EM133056288

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