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Assume that your company has the following expected dividends over the next 5 years (D. - Ds): $1.00, $1.80. $2.40, $3.50, and $3.71. In Year

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Assume that your company has the following expected dividends over the next 5 years (D. - Ds): $1.00, $1.80. $2.40, $3.50, and $3.71. In Year 4, dividends will then begin to grow at a constant, long-run sustainable growth rate of 6 percent (Ds = $3.50 1.06 - $3.71, etc.). Also assume that the risk-free rate is 3.0 percent, the Risk Premium on the market is 9.0 percent, and the company has a beta of 1.20. Given the calculate the expected dividend yield at Year 2. 5.78% 4.01% 4.51% 4.98% O 5.44% 5

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