What is the current price of the stock and dividend yield

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Reference no: EM131067100

The Company expects their dividends and earnings to grow at a constant rate of 5% a year into the foreseeable future. Currently the market is requiring a 12% rate of return on their stock. The most recent dividend paid was $2.85/share.

a) What is the current price of the stock?

b) What is the dividend yield?

c) What is the capital gains yield?

Please show full work and the formula you used.

Reference no: EM131067100

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