Question: Problem 7-3 Stock Values [LO 1] The next dividend payment by Dizzle, Inc., will be $3.20 per share. The dividends are anticipated to maintain a

Problem 7-3 Stock Values [LO 1]

The next dividend payment by Dizzle, Inc., will be $3.20 per share. The dividends are anticipated to maintain a growth rate of 6.75 percent, forever. Assume the stock currently sells for $50.00 per share.

What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Dividend yield ____________%

What is the expected capital gains yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Capital gains yield ____________%

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