Question: provide the accurate answer to this general accounting problem using appropriate methods. An investor is analyzing a stock that currently sells for $40 per share.

provide the accurate answer to this general accounting problem using appropriate methods.

An investor is analyzing a stock that currently sells for $40 per share. It is expected to pay a dividend of $1.80 per share next year. The required rate of return on the stock is 9.3%. What is the capital gains yield? A. 4.8% B. 5.00% C. 7.80% D. 6.80% E. 3.75%

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