Your aunt, Mabel, plans to invest in the common stock of Brannew Corporation. Knowing that you are studying finance, she asks for your suggestion. Your calculation shows that yield on Treasury securities is 5%. You know that the S&P 500 Indexs expected annual return is 16%. Aunt Mabel tells you that this company just paid an annual dividend of $2. After collecting as much information about this firm as possible, you expect the firms dividend will grow at an annual rate of 6% forever. The stock is currently being sold for $30 per share.

32. What is the dividend yield on this stock?