Question: Lets say a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3 years, and, after

Lets say a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3 years, and, after that, the dividends are expected to grow at a constant rate of 6% per year forever. The stock's required return is 14%. Find the capital gain yield (rounded to the nearest percent) during the first year.

Question 10 options:

6%

8%

9%

14%

Lets say a stock that is expected to pay $2 dividends next year, $3 dividends in 2 years, $4 dividends in 3 years, and, after that, the dividends are expected to grow at a constant rate of 6% per year forever. The stock's required return is 14%. Find the dividend yield during the seventh year.

Question 11 options:

6%

14%

8%

9%

I understand that you must answer 1 question, however for my previous question, the answer was copied and pasted from another page. That is why I greatly appreciate if you can answer two of the questions, I will greatly appreciate thanks.

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