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:

Integer Value

A numerical value that represents whole numbers without fractions or decimals.

Character

In programming, a character is a data type used to store a single character (like letters, numbers, or symbols) typically represented within quotes.

Postfix Increment Operator

The operator (++) used in programming languages like C and C++ to increase the value of a variable by one after its current value is used.