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Presto's just paid an annual dividend of $1.25 per share. The firm has a policy whereby it increases its dividend by 2 percent annually. Which

Presto's just paid an annual dividend of $1.25 per share. The firm has a policy whereby it increases its dividend by 2 percent annually. Which one of the following is the correct computation for the capital gains yield if the current stock price is $21 a share? A)(.02*$1.25)/$21 B)$1.25/$21 C).02/$21 D)[$1.25*(1+.02)]/$21 E).02

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