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If the Dividend Yield for Year One Is Expected to Be

Question 1

Multiple Choice

If the dividend yield for year one is expected to be 5 percent based on the current price of $25, what will the year four dividend be if dividends grow at a constant 6 percent?


A) $1.33
B) $1.49
C) $1.58
D) $1.67 .05 x 25 = 1.25 = Div1

Correct Answer:

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