Calculate the dividend yield

Reference no: EM1359892

Nonconstant Growth. You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the next 3 years. You believe the stock will sell for $20 at the end of the third year.

a. What is the stock price if the discount rate for the stock is 10 percent?
b. What is the dividend yield?

Reference no: EM1359892

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