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You buy a share of The Ludwig Corporation stock for $15.81. You expect it to get dividends of $2.10, $1.802, and $1.9101 in Years 1,

  1. You buy a share of The Ludwig Corporation stock for $15.81. You expect it to get dividends of $2.10, $1.802, and $1.9101 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.22 at the end of 3 years.

    Calculate the expected 3-year capital gains yield.

     

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