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