The most recently paid dividend by Bridges & Associates was $0.625 per share. The annual growth of its dividends is expected to be 20%, 25% and 35% in the following 3 years. After 3 years, dividend growth will slow down to a constant rate of 6% a year. The required rate of return on the stock of Bridges & Associates is 10%.
If market is in equilibrium, what would be the expected dividend yield and capital gains yield for Year 5?