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Nielson Motors has a share price of $25 today. If Nielson Motors is expected to pay...

Nielson Motors has a share price of $25 today. If Nielson Motors is expected to pay a dividend of $0.75 this year, and its stock price is expected to grow to $26.75 at the end of the year, then Nielson's dividend yield and equity cost of capital are:

A) 3.0% and 7.0% respectively.

B) 3.0% and 10.0% respectively.

C) 4.0% and 6.0% respectively.

D) 4.0% and 10.0% respectively.
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