QUESTION 7 A company's new fiscal year starts today. This company is scheduled to pay its next dividend in one year. This company calculates price to earnings ratio using the current price and most recent earnings per share. Today, this company announced the following information for the most recent fiscal year: Current book value of equity. $25 Earnings per share during most recent fiscal year... $8 Current price to earnings ratio.... 5 This company also provided the following guidance: Payout ratio in perpetuity....... 80% Expected return on equity in perpetuity... 12% Investors calculate dividend yield using expected dividend per share over the next year and the current share price. Based on this information, what dividend yield should this company have today? Dividend yield must be calculated using the dividend payment in one year. Your final answer must be rounded to the nearest percent, only numeric, and exclude the percent sign. Rounding examples: 1.49 would be rounded to 1 and 1.50 would be rounded to 2. QUESTION 7 A company's new fiscal year starts today. This company is scheduled to pay its next dividend in one year. This company calculates price to earnings ratio using the current price and most recent earnings per share. Today, this company announced the following information for the most recent fiscal year: Current book value of equity. $25 Earnings per share during most recent fiscal year... $8 Current price to earnings ratio.... 5 This company also provided the following guidance: Payout ratio in perpetuity....... 80% Expected return on equity in perpetuity... 12% Investors calculate dividend yield using expected dividend per share over the next year and the current share price. Based on this information, what dividend yield should this company have today? Dividend yield must be calculated using the dividend payment in one year. Your final answer must be rounded to the nearest percent, only numeric, and exclude the percent sign. Rounding examples: 1.49 would be rounded to 1 and 1.50 would be rounded to 2