The company expects their dividends and earnings to grow at, Financial Management

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The company expects their dividends and earnings to grow at

The Company expects their dividends and earnings to grow at a constant rate of 5% a year into the foreseeable future. Currently the market is requiring a 12% rate of return on their stock. The most recent dividend paid was $2.85/share.

a) What is the current price of the stock?

b) What is the dividend yield?

c) What is the capital gains yield?

Please show full work and the formula you used.

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