A particular stock is currently selling for 3000 per share


A particular stock is currently selling for $30.00 per share. An annual dividend of $2.00 per share was paid only moments ago, and it is expected that dividends will grow 4% per year. What are the expected dividend yield and the expected capital gains yield according to the constant dividend growth model?

a. 4.00% and 6.67%, respectively

b. 13.33% and 4.00%, respectively

c. 8.00% and 12.00%, respectively

d. 6.93% and 4.00%, respectively

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Financial Management: A particular stock is currently selling for 3000 per share
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