A)

Assume a corporation has just paid a dividend of $ 1.03 per share. The dividend is expected to grow at a rate of 4.4% per year forever, and the discount rate is 8.1%.

What is the Capital Gains yield of this stock?

B)

You're analyzing the stock of a certain company. The most recent dividend paid was $3 dollars per share. The company's discount rate is 10%, and the firm is expected to grow at 4% per year forever. What is the dividend yield of this stock?