$8$:$47$ C

HW$10$

Question $8(10$ points$)$

A company just paid an annual dividend of $$1\mathrm{.}5$ per share. You as an analyst predict that the dividend will grow at $20\%$ for the next $2$ years and then $5\%$ forever. With a required return of $10\%$ and a market in equilibrium, what is the capital gains yield in Yr$1?$

$\backslash$table$[[$a$,5\mathrm{.}6\%$