Krell Industries has a share price of $ 22.00 today. If Krell is expected to pay a dividend of $ 0.88 this year and its stock price is expected to grow to $ 23.54 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is nothing %. (Round to one decimal place.) The capital gain rate is nothing %. (Round to one decimal place.) The total return is nothing %. (Round to one decimal place.)

The computation is shown below::

The dividend yield = Annual dividend : Market share price

where,

Market share price = $22 per share

Annual dividend = $0.88 per share

So, the dividend yield = ($0.88 per share : $22 per share) * 100

= 4.0%

The capital gain rate is

= (Expected share price - initial price) : (Initial price) * 100

= ($23.54 - $22) : ($22) * 100

= $1.54 : $22 * 100

= 7.0%

Now the total return is

= (Expected share price + expected dividend - initial price) : (Initial price) * 100

= ($23.54 + $0.88 - $22) : ($22) * 100

= $2.42 : $22 * 100

= 11.0%