What is the dividend yield


Problem:

The next dividend payment by Mosby, Inc., will be $2.55 per share. The dividends are anticipated to maintain a 6.00 percent growth rate, forever. Assume the stock currently sells for $48.70 per share.

Requirement:

Question 1: What is the dividend yield?

Question 2: What is the expected capital gains yield?

Note: Show supporting computations in good form.

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Accounting Basics: What is the dividend yield
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