Answer:
i=4.84%
Explanation:
the key to answer this question, is to remember the model of return for a perpeuity dividend calculation:
[tex]Value=\frac{1}{i-k}[/tex]
where value is the current stock price, i is the dividend yield and k is the growth rate, so applying to this particular case we have
k=3.4/91
k=3.74%
and solving i for the previous formula:
[tex]91=\frac{1}{i-0.0374}[/tex]
[tex]0.01098={i-0.0374}[/tex]
[tex]i=4.84\%[/tex]
