If the Dividend Yield for Year One Is Expected to Be

question 75

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

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Definitions:

Reluctance

The feeling of hesitancy or unwillingness to do something.

Disapproval

The act of expressing an unfavorable opinion about something or someone, often leading to social or personal consequences.

Longitudinal Study

A study that collects data on the same people at more than one time.

Termites

Insects that are part of the order Blattodea, known for their wood-eating habits, which can lead to significant damage to wooden structures and trees.