New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.50 per share exactly 5 years from today. After that, the dividends are expected to grow at 2.7 percent forever. The required return is 10.5 percent.Which of the following is true about the stock's dividend yield and CG yield?

• Both stock's dividend yieldand the capital gain yield should stay constant for the next 20 years (at least).

• The stock's dividend yield should rise and the capital gain yield should fall after 5 years.

• Both stock's dividend yieldand the capital gain yield should rise after 5 years.

• The stock's dividend yield should fall and the capital gain yield should rise after 5 years.

• Both stock's dividend yieldand the capital gain yield should fall after 5 years.