Ugg's is expected to pay a dividend of $8.15 one year from now.

1. Compute the expected value of Ugg's stock as of today as well as the dividend yield, which is computed as the expected dividend per share divided by the stock price today. Assume the annual dividend will grow 5% in perpetuity and the market requires a 15% expected return.

1. Using the assumptions above, calculate the value of Ugg's stock in one year's time. Next, calculate the company's capital gains yield, which is computed as the expected gain per share (change in price) divided by the stock price you calculated in Q5.