P0 = 21.40 D1 = 1.07 D2 =1.1449 D3 = 1.2250 P3 = 26.22 Growth rate in dividends: PV= 1.07; FV = 1.2240; N = 2; CPT I/Y; I/Y = 6.9544% Let\'s round to 7%. Dividend yield = (d1/P0) = 1.07/21.40 = 0.05 Total return = 7% + 5% = 12% Solution P0 = 21.40 D1 = 1.07 D2 =1.1449 D3 = 1.2250 P3 = 26.22 Growth rate in dividends: PV= 1.07; FV = 1.2240; N = 2; CPT I/Y; I/Y = 6.9544% Let\'s round to 7%. Dividend yield = (d1/P0) = 1.07/21.40 = 0.05 Total return = 7% + 5% = 12%.