LO 1 LO 1 2. Stock Values The next dividend payment by Hoffman, Inc., will be $2.65 per share. The dividends are anticipated to maintain a growth rate of CHAPTER 7 Equity Markets and Stock Valuation 4.5 percent forever. If the stock currently sells for $43.15 per share, what is the required return? 3. Stock Values For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield? 231 5. Stock Valuation Redan, Inc., is expected to maintain a constant 4.3 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 5.6 percent, what is the required return on the company's stock