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Find the dividend yield

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ABC Company has been growing at a 8% rate, and it just paid a dividend of D0 = $3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate, to 20 percent annually for the next 3 years. After this time, growth is expected to return to the long-run constant rate of 8 percent. The required return on ABC stock is 13 percent.  What should the dividend yield (1/P0) be today? (hint you need to calculate the price before you can find the dividend yield).

Reference no: EM131099252

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