Business, 02.03.2020 17:29, mohayon2020

The XYZ Company, whose common stock is currently selling for $40 per share, is expected to pay a $2.00 dividend in the coming year. If investors believe that the expected rate of return on XYZ is 14%, what growth rate in dividends must be expected?

A) 5%
B) 14%
C) 9%
D) 6%

Answers: 3

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The XYZ Company, whose common stock is currently selling for $40 per share, is expected to pay a $2....