Anle Corporation has a current price of $27, is expected to pay a dividend of $2 in one year, and its expected price right after paying that dividend is $28. a. What is Anle's expected dividend yield? b. What is Anle's expected capital gain rate? c. What is Anle's equity cost of capital?

2.Assume Evco, Inc., has a current stock price of $46 and will pay a $1.80 dividend in one year; its equity cost of capital is 13%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price?