You expect a share of stock to pay dividends of $2.10, $2.35,and $2.60 in each of the next 3 years. You believe the stock willsell for $33.00 at the end of the third year.
a. What is the stock price if the discount rate for the stock is20%? (Do not round intermediate calculations. Round your answer to2 decimal places.)
b. What is the dividend yield for year 1? (Do not roundintermediate calculations. Enter your answer as a percent roundedto 2 decimal places.)
c. What will be the dividend yield at the start of year 2? (Donot round intermediate calculations. Enter your answer as a percentrounded to 2 decimal places.)
