What is the capital gains yield $($return$)$ over this one year period $($i$.$echange in price$)($P$1/$P$0-1)?$

Submit answer as a whole number $($e$.$g$.0\mathrm{.}10$ instead of $10\%)$

$0\mathrm{.}05$

Explanation

$5\%$

$PO=D\frac{1}{r-g}P1=D\frac{2}{r-g}=(1+g)D\frac{1}{r-g}$

$PO=\frac{1\mathrm{.}05}{.}15-0\mathrm{.}5=10\mathrm{.}50P1=\frac{1\mathrm{.}10250}{.}15-\mathrm{.}05=11\mathrm{.}025$

Capital gains $=P\frac{1}{P}Q-1=\frac{11\mathrm{.}025}{10\mathrm{.}50}-1=0\mathrm{.}05=5\%$

The price will grow at the same rate at which the dividends grow