INV3 P5b Victoria Company’s beta is exactly 2, and the market risk premium is 8%, with a risk-free rate of 4%. The company’s most recent dividend was $5 per share, and the dividend is expected to grow...

INV3 P5b

Victoria Company’s beta is exactly 2, and the market risk premium is 8%, with a risk-free rate of 4%. The company’s most recent dividend was $5 per share, and the dividend is expected to grow at 15% for the next three years and then grow at 6% per year indefinitely.

What would be the dividend yield?