Question: If D 1 = $1.50, g (which is constant) = 6.8%, and P 0 = $56, then what is the stocks expected capital gains yield

If D1 = $1.50, g (which is constant) = 6.8%, and P0 = $56, then what is the stocks expected capital gains yield for the coming year?

7.07%

7.34%

5.44%

6.80%

7.82%

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