A company just paid an annual dividend of $1.5 per share. You as an analyst predict that the dividend will grow at 20% for the next 2 years and then 5% forever. With a required return of 10% and a market in equilibrium, what is the capital gains yield in Yr1?

a	5.6%
b	20%
c	10%
d	3.4%

A company just paid an annual dividend of $1.5 per share. You as an analyst predict that the dividend will grow at 20% for the next 2 years and then 5% forever. With a required return of 10% and a market in equilibrium, what is the dividend yield in Yr1?

a	10%
b	3.4%
c	5.6%
d	4.4%

A company just paid an annual dividend of $1.5 per share. You as an analyst predict that the dividend will grow at 20% for the next 2 years and then 5% forever. With a required return of 10% and a market in equilibrium, what is the total return in Yr1?

a	5%
b	9%
c	10%
d	20%