What is the dividend yield for year one

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You expect a share of stock to pay dividends of $1.60, $2.25, and $2.50 in each of the three next years. You believe the stock will sell fo $25.00 at the end of the third year.

A. What is the stock price if the discount rate for the stock is 10%? (Round to two decimals).

B. What is the dividend yield for year 1? (Enter as percent and round to two decimals).

C. What wil be the dividend yield at the start of year 2? (Enter as a percent and round to two decimals).

Reference no: EM131843986

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