Equity Market and Stock Valuation

If D0 = $4.00, rs = 9%, and g = 5% for a constant growth stock, what are the stock's expected dividend yield and capital gains yield for the coming year? $4.00 DO gL 3% 3% Expected D1 Stock price Expected dividend yield Expected capital gains yield Alternatively, you know that the capital gains yield is equal to the growth rate Expected capital gains yield-growth rate- Because the total return is rs, the dividend yield is rs minus the capital gains yield: Expected dividend yield