Question: Problem 7-3 Stock Values [LO 1] The next dividend payment by Hoffman, Inc., will be $2.65 per share. The dividends are anticipated to maintain a

Problem 7-3 Stock Values [LO 1] The next dividend payment by

Problem 7-3 Stock Values [LO 1] The next dividend payment by Hoffman, Inc., will be $2.65 per share. The dividends are anticipated to maintain a growth rate of 6.5 percent forever. Assume the stock currently sells for $48.90 per share. a. 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.) b. 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.) Dividend yield % . b. Capital gains yield

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