What is the dividend yield for year one

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Problem - You expect a share of stock to pay dividends of $1.80, $2.05, and $2.20 in each of the next 3 years. You believe the stock will sell for $24.00 at the end of the third year.

Required -

a. What is the stock price if the discount rate for the stock is 20%?

b. What is the dividend yield for year 1?

c. What will be the dividend yield at the start of year 2?

Reference no: EM133024077

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