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The next dividend payment by Halestorm, Inc., will be $9.08 per share. The dividends are anticipated...

The next dividend payment by Halestorm, Inc., will be $9.08 per share. The dividends are anticipated to maintain a growth rate of 1.31 percent forever. If the stock currently sells for $1.1 per share, what is the expected capital gains yield? (Enter your answer as a percentage, omit the "%" sign in your response, and enter your answer with two decimal places. For example, 1.214% should be entered as 1.21.)

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Answer #1

Capital gains yield will be equal to the growth rate of the company.

Hence capital gains yield is equal to

=1.31

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