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The next dividend payment by Hoffman, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 5.5 percent forever.

The next dividend payment by Hoffman, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 5.5 percent forever. Assume the stock currently sells for $49.50 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.)

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