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A company will pay a dividend of $1.25 next year. The dividend is expected to grow at a constant rate of 4.5% into the foreseeable

A company will pay a dividend of $1.25 next year. The dividend is expected to grow at a constant rate of 4.5% into the foreseeable future. The current stock price is $22.90 per share. What are the stocks expected dividend yield AND its expected total return for the coming year?

a.

5.46% and 9.96%

b.

4.26% and 8.76%

c.

6.25% and 10.75%

d.

4.26% and 4.50%

e.

5.46% and 4.50%

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