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1. The next dividend payment by SAF, Inc., will be $4.20 per share. The dividends are anticipated to maintain a 5 percent growth rate, forever.

1. The next dividend payment by SAF, Inc., will be $4.20 per share. The dividends are anticipated to maintain a 5 percent growth rate, forever. If SAF stock currently sells for $62.00 per share, what is the required return?

1-1. For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield?

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