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Problem 8-3 Stock Values [LO1] The next dividend payment by Im, Incorporated, will be $1.80 per share. The dividends are anticipated to maintain a

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Problem 8-3 Stock Values [LO1] The next dividend payment by Im, Incorporated, will be $1.80 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. The stock currently sells for $35 per share. a. What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the expected capital gains yield? (Enter your answer as a percent.) a. Dividend yield b. Capital gains yield % %

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