If the Dividend Yield for Year One Is Expected to Be

question 1

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 .05 x 25 = 1.25 = Div₁

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Definitions:

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, making them genetically unique from one another.

Self-Defeating Belief

A negative belief one holds about oneself that undermines their success or happiness.

Negative Explanatory Style

A pattern of explaining events with pessimistic causes, often attributing bad outcomes to stable, global, and internal factors, linked to depression and helplessness.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.