Calculate Capital Gains from Price Appreciation. If the next dividend of Blue Jeans Incorporated is D1 = $1.75 and management expects to maintain a dividend growth rate of g = 2.5% indefinitely, what is this stock's expected price appreciation for the coming year according to the theory behind the Dividend Discount Model? 2.1% 2.5% 3.0% 3.33% not enough information to determine.