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

19. What should be the annual dividend yield for Year 3 of a stock if a $4 dividend per share was just paid, the stock has an annual required rate of return of 18%, and a constant dividend growth rate of 6%? A) 6.35% B) 7.57% C) 12.00% D) 13.48%