What is the dividend yield and capital gains yield on


Epsilon Inc.has just paid a dividend of $3 per share, and it is expected to pay a dividend of $3.15 per share in one year’s time. Assuming that required return is 13% and the dividend growth will continue at the same rate forever, what is the dividend yield and capital gains yield on Epsilon’s shares?

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Financial Management: What is the dividend yield and capital gains yield on
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