The current price of Janco stock is $16.77. Dividends are expected to grow at 4.4% indefinitely and the most recent dividend paid yesterday was $3.93. What is the required rate of return, dividend yield, and capital gains yield on Janco's stock? (show your answers to 4 decimal places)

Required return = 28.87%

Dividend yield = 24.4658%

Capital gains yield = 4.4%

Explanation:

Required return = (D1/Current price) + Growth rate

= (3.93*1.044) / 16.77+0.044

=28.8658% (or 0.2887 approx)

Dividend yield=Dividend for next period/Current price

= (3.93*1.044) / 16.77

=24.4658% (or 0.2447 approx)

Capital gains yield=Growth Rate

=4.4% (or 0.044)