WHAT SHOULD BE THE ANNUAL DIVIDEND YIELD FOR YEAR 3 OF A STOCK IF...

20. What should be the annual dividend yield for Year 3 of a stock if a $5 dividend per share was just paid, the stock has an annual required rate of return of 20%, and a constant dividend growth rate of 6%? A) 11% B) 12% C) 13% D) 14% E) 15% Conceptual questions (2 points each)