Problem 7-3 Stock Values [LO 1]

The next dividend payment by Wyatt, Inc., will be $2.70 per share. The dividends are anticipated to maintain a growth rate of 6.75 percent, forever. Assume the stock currently sells for $49.00 per share.

Requirement 1: What is the dividend yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Requirement 2: What is the expected capital gains yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)