Essay question: Show your detail work. You own GR stock. The required return on this stock is 13 percent. What will your capital gain and capital gain yield be on this stock if you sell it four years from now? The company has paid a constant annual dividend of $0.40 a share for the last 5 years. Last week management announced the dividends will increase next year by 1.5 percent and will stay at that level through year 4. After year 4 the dividends will increase by 2 percent annually..