Practice questions:

(Please show work clearly)

10. The Edward Company is expected to pay a dividend of D. = $1.00 per share at the end of the year, and that dividend is expected to have a negative and constant growth rate, -4% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the capital gain yield