What is the expected yield of this stock

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Reference no: EM131873151

As an equity analyst you believe the stock will pay an expected dividend of $3 per share beginning next year. Assume that you expect growth rate of the divident to be 9% per annum in perpetuity. Assume that the current price of the stock is $40. What is the expected yield of this stock? What is the expected capital gains rate (in %) in any given year?

Reference no: EM131873151

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