Life Sciences Company is expected to pay a dividend in year 1 of $1.00, a dividend in year 2 of $3.00, and a dividend in year 3 of $5.00. After year 3, dividends are expected to grow at the rate of 7% per year. An appropriate required rate of return for the stock is 14%. Using the multistage DDM, what dividend yield do you expect on the stock during the next year? Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
