just #3

A company does not plan to pay dividends for the next five years, but will begin to pay dividends after that. Which of the following statements is true? The dividend yield this year is non-zero. The stock has no value. The capital gains yield this year will be the same as the stock's required return. The stock has dividend yield and capital gains yield this year equal to 0 Question 3 0/1 pts A company made a most recent dividend payment of $4.25. The dividend will increase by 25% per year for the next 3 years and then will increase by 1% per year forever. The required return is 10%. Which of the following statements is true? The capital gains yield this year will be 25%. The dividend yield this year will be 9%. The stock price today is negative. The stock price in 30 years should be the stock price in 3 years multiplied by 1.01-27 because the stock price will start growing by 1% per year in 3 years