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You have the following data regarding a share ofstock in a particular firm: The dividend at the end of the current year is expected to

You have the following data regarding a share ofstock in a particular firm:

  • The dividend at the end of the current year is expected to be $4.38/share
  • The dividend is expected to grow at a constant rate forever
  • The dividend growth rate is -6.04%
  • Investors in the stock expect a 20.32% total return from investing in the stock

What will be the capital gains yield for the second year (t=1 to t=2)?

(Answer to the nearest 0.01%)

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