Question: If D 1 = $1.50, g (which is constant) = 3.0%, and P 0 = $56, what is the stock's expected capital gains yield for

If D1 = $1.50, g (which is constant) = 3.0%, and P0 = $56, what is the stock's expected capital gains yield for the coming year?

Select the correct answer.

a. 3.00%
b. 3.81%
c. 3.54%
d. 3.27%
e. 4.08%

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