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Sigma Inc. has just paid a dividend of $2.50 per share, and it is expected to pay a dividend of $2.75 per share in one
Sigma Inc. has just paid a dividend of $2.50 per share, and it is expected to pay a dividend of $2.75 per share in one years time. Assuming that required return on a similar companys equity is 15% and the dividend growth will continue at the same rate forever, what is the dividend yield and capital gains yield on Sigmas shares?
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