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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

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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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