If the Dividend Yield for Year One Is Expected to Be

question 88

Multiple Choice

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

• A)$1.33
• B)$1.49
• C)$1.58
• D)$1.67

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Definitions:

Gain-Sharing Plans

Incentive strategies that reward employees for contributing to their company's productivity and success through cost-saving measures.

Reduced Costs

Efforts or strategies implemented to decrease expenses and improve financial efficiency within an organization or project.

Improved Productivity

An increase in the efficiency of producing goods or services, often measured by the output per unit of input.

Current Distribution Plans

Strategies and methods used by businesses to allocate resources, goods, or services to customers or other areas of the business in the present moment.