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A stock with a price of $400 is expected to pay a $8 dividend next year. This dividend is expected to increase by 4% indefinitely.
A stock with a price of $400 is expected to pay a $8 dividend next year. This dividend is expected to increase by 4% indefinitely. What is the expected capital gains yield of the stock?
a.
2.00%
b.
8.00%
c.
4.00%
d.
12.00%
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