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The next dividend payment by Hoffman, Inc., will be $2.70 per share. The dividends are anticipated to maintain a growth rate of 6.75 percent forever.

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The next dividend payment by Hoffman, 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. 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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Answer is complete but not entirely correct. Dividend yield Capital gains yield 12.26 % 12.26 %

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