5 Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years. The last dividend paid was $8. The discount rate is 19% and the steady growth rate after 3 years is 2%. a. What is the capital gain in stock price from year 0 to year 1? (Do not round intermediate calculations. Enter your answer as a dol amount rounded to 2 decimal places.) 26 Capital gain b. Calculate the expected rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected rate of return %

Tattletale News Corp, has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to a. What is the copital goin in stock price from yoar 0 to year 1 ? (Do not round intermediate calculations. Enter your answer as a do amount rounded to 2 decimal places.) Calculate the expected rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places.)