P9-2 (similar to)

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Anle Corporation has a current price of

$10,

is expected to pay a dividend of

$1

in one year, and its expected price right after paying that dividend is

$27.

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?

a. What is Anle's expected dividend yield?

Anle's expected dividend yield is

nothing%.

(Round to two decimal places.)