The dividend yield is defined as the ratio of next year$$s dividend to today$$s stock price. Let the trailing dividend yield be defined as the ratio of this year$$s dividend to today$$s stock price. If the cost of equity capital is $12\%$ and the growth rate of the company$$s dividends is expected to be a constant $5\%$ per year, what is the company$$s

$$

$($i$)$ Dividend yield?

$($ii$)$ Trailing dividend yield?

Question $13$ options:

$($i$)7\%$; $($ii$)6\mathrm{.}67\%$

$($i$)12\%$; $($ii$)5\%$

$($i$)17\%$; $($ii$)14\mathrm{.}53\%$

$($i$)6\mathrm{.}67\%$; $($ii$)5\mathrm{.}96\%$