Question: If D0 = $3.50, g (which is constant) = 6.0%, and P0 = $80, what is the stock's expected dividend yield for the coming year?

If D0 = $3.50, g (which is constant) = 6.0%, and P0 = $80, what is the stock's expected dividend yield for the coming year? The expected rate of return is what percent?

Use this Equation: D₁ = D₀(1+g)

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