Question: Problem 8 - 3 Stock Values [ LO 1 ] The next dividend payment by Im , Incorporated, will be $ 1 . 5 6

Problem 8-3 Stock Values [LO1]
The next dividend payment by Im, Incorporated, will be $1.56 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $29 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? (Enter your answer as a percent.)

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