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2. Sabita, Inc., will pay $1.60 per share next year. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock

2. Sabita, Inc., will pay $1.60 per share next year. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $30 per share.

a. What is the dividend yield?

b. What is the expected capital gains yield?

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