Suppose the following bond quote for IOU Corporation appears in the financial page of today's...
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Suppose the following bond quote for IOU Corporation appears in the financial page of today's Newspaper. Assume the bond has a face value of $1,000, and the current date is April 15, 2019 Company (Ticker SIOU (OU) Coupon 6.90 Maturity Apr 15, 2033 Last Price 92.758 Last Vield ?? EST VOL (000s) 75 The next dividend payment by Hoffman, Inc., will be $2.80 per share. The dividends are anticipated to maintain a growth rate of 7.25 percent forever. Assume the stock currently sells for $49.20 per share. a. What is the dividend yield? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the expected capital gains yield? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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