XYZ, Inc. recently paid a dividend of $1.00 per share which is expected to grow at a constant annual rate of 8% per year. The market price of the company's stock is $20 per share. What is the dividend yield on XYZ stock? Show your answer in percent to one decimal place. Your Answer:

Essentials Of Investments
11th Edition
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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Question 3
XYZ, Inc. recently paid a dividend of $1.00 per share which is expected to grow at a
constant annual rate of 8% per year. The market price of the company's stock is $20
per share. What is the dividend yield on XYZ stock? Show your answer in percent to
one decimal place.
Your Answer:
Answer
Transcribed Image Text:Question 3 XYZ, Inc. recently paid a dividend of $1.00 per share which is expected to grow at a constant annual rate of 8% per year. The market price of the company's stock is $20 per share. What is the dividend yield on XYZ stock? Show your answer in percent to one decimal place. Your Answer: Answer
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