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Question 8 A firm will issue a dividend of $2.4 the next year(D1=2.4), the dividend is expected to experience super growth for the next 2

Question 8

A firm will issue a dividend of $2.4 the next year(D1=2.4), the dividend is expected to experience super growth for the next 2 years at 30%, then the firm is expected to resume normal growth of 5%. Suppose the cost of the firm is the 15%. What is the capital gains yield for the next year(in percentage)?

a. 5.12

b. 6.79

d. 8.21

d. 15

e. 5

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