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You believe that the required return on Allegheny Publishing's stock is 16.87 % and thus at today's price of $30.75you believe the stock is undervalued.

You believe that the required return on Allegheny Publishing's stock is 16.87 % and thus at today's price of $30.75you believe the stock is undervalued. Additionally, the stock is expected to pay a year-end dividend, D1, of $7.78and grow perpetually at a constant rate of 4.08percent per year. If you buy the stock and hold for one year when the price converges to the intrinsic value (after one year). What would be your capital gains yield from the one year investment (answer as a percentage)?

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