A company Will pay predicted to maintain a 4 percent growth rate forever. The stock currently sel $50 per share. What is the dividend yield O a. 5% O b. 4.5 O c. 5.5% O d. 4%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A company will pay the next dividend that will be $2.5 per share. The dividends are
predicted to maintain a 4 percent growth rate forever. The stock currently sells for
$50 per share. What is the dividend yield
O a. 5%
stion
O b. 4.5
O c. 5.5%
O d. 4%
Transcribed Image Text:A company will pay the next dividend that will be $2.5 per share. The dividends are predicted to maintain a 4 percent growth rate forever. The stock currently sells for $50 per share. What is the dividend yield O a. 5% stion O b. 4.5 O c. 5.5% O d. 4%
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