Dividend payment-what is the capital gains yield

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The next dividend payment by Dennic, Inc will be $2.00 per share. The dividends are anticipated to maintain a 6 percent growth rate, forever. If the stock currently sells for $40.77 per share, what is the capital gains yield?

1) 6.00%

2) 5.20%

3) 11.20%

4) 4.91%

Reference no: EM131556114

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