The next dividend payment by Hoffman, Inc., will be $3.25 per share. The dividends are anticipated to

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The next dividend payment by Hoffman, Inc., will be $3.25 per share. The dividends are anticipated to maintain a growth rate of 7 percent forever. Assume the stock currently sells for $50.10 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.)

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Essentials of Corporate Finance

Essentials of Corporate Finance

ISBN: 978-1260013955

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: Feb 13, 2024 01:48 AM

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