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You are interested in investing in Victorious Inc. Based on your analysis, you expect the current dividend ( D 0 , now equal to $

You are interested in investing in Victorious Inc. Based on your analysis, you expect the current dividend (D0, now equal to $1, paid yesterday) to grow at an annual rate of 25% for the next 3 years, and then to grow at a constant rate of 3% thereafter. If investors have a required rate of return of 10%, then what is the expected capital gain yield during the second year?
4.90%
4.17%
5.10%
5.83%
5.44%
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