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Lucas Laboratories' last dividend was $1.50 and its expected growth rate is a constant 5 percent. If the stockholders' required rate of return is 15
Lucas Laboratories' last dividend was $1.50 and its expected growth rate is a constant 5 percent. If the stockholders' required rate of return is 15 percent, what is the expected dividend yield and expected capital gains yield for the coming year?
A. a. 0%; 15%
B. b. 5%; 10%
C. c. 10%; 5%
D. d. 15%; 0%
E. e. 15%; 15%
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