Question: The answer is given. Please give an explaination of why this is If the dividends yield for year one is expected to be 5% based

The answer is given. Please give an explaination of why this

The answer is given. Please give an explaination of why this is

If the dividends yield for year one is expected to be 5% based on the current price of $25, what will the year four dividend be if dividends grow at a constant 6%? a. $1.40 b. $1.49 c. $1.58 d. $1.67

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