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Problem 8-3 Stock Values [LO1] The next dividend payment by Blue Cheese, Inc., will be $2.00 per share. The dividends are anticipated to maintain a

Problem 8-3 Stock Values [LO1]

The next dividend payment by Blue Cheese, Inc., will be $2.00 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $40 per share.

What is the dividend yield? (Round your answer to 2 decimal places. (e.g., 32.16))

Dividend yield %

What is the expected capital gains yield?

Capital gains yield %

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