Expected dividend yield and expected capital gains

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Reference no: EM13826707

Problem:

Lucas Clinic's last dividend (D0) was $1.50. Its equilibrium stock price is $15.75 and its expected growth rate is a constant 5%. If the stockholders' required rate of return is 15%, what is the expected dividend yield and expected capital gains yield for the coming year?

Additional Information:

This question is basically belongs to Finance as well as it explains about computing the expected dividend yield and expected capital gains yield for the coming year for a company's stock.

Reference no: EM13826707

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