What is the capital gain yield on warren corporation stock

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Question - Warren Corporation will pay a $1.10 dividend per share next year. The dividends are expected to grow at 3% per year forever. Warren Corporation's stock currently sells for $35 per share. What is the capital gain yield on Warren Corporation's stock? What is its required rate of return?

A. 2%; 5.51%.

B. 2.5%; 6.23%.

C. 3%; 6.14%.

D. 3.1%; 3.14%.

E. None of the above.

Reference no: EM132817540

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