Stock XYZ has a current dividend of $6.00. The dividend is expected to grow at 4.00% per year until year 3 and then at 3.00% per year for the rest of time. Based on the riskiness XYZ, its discount rate is 7.00%. With this information, what is the dividend yield from today to year 1?
(A) 7.00%
(B) 3.73%
(C) 4.00%
(D) 4.12%
(E) 3.93%
(F) 3.07%
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Stock XYZ has a current dividend of $6.00. The dividend is expected to grow at 4.00% per year until year 3 and then at 3.00% per year for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Why is it important to carefully read and understand a financial institutions policies when opening a savings account?
Answers (1)
Fully vested incentive stock options exercisable at $46 per share to obtain 20,000 shares of common stock were outstanding during a period when the average market price of the common stock was $50 and the ending market price was $50.
Answers (1)
Chapter 7 1) Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $19 each and used a budgeted selling price of S19 per unit Budgeted 39,000 units $152,000 s50,000 Actual 48,000 units
Answers (1)
The adjusted trial balance for Willow Company as of December 31 is presented below. Debit Credit Cash $ 15,000 Accounts Receivable 22,000 Land 165,000 Accounts Payable $ 32,000 Common Stock 60,000 Retained Earnings 89,000 Service Revenue 57,000
Answers (1)
Analyze 5 entrepreneurial qualities
Answers (1)
New Questions in Business
When the consumer price index rises, the typical family a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d.
Answers (1)
A magazine subscription costs $45 per year at the beginning of each year, or $115 now for a three-year subscription. If the subscriber elects to pay the $115 now, the rate of return on the investment will be nearest to:
Answers (2)
The second step in rational decision making is to: choose the solution that maximizes value. identify the criteria that are important in making the decision. evaluate the alternatives. implement the alternative.
Answers (1)
What impact will a spike in wages cause to the labor demand curve?
Answers (1)
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)