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Stock XYZ has a current dividend of $6.00 . The dividend is expected to grow at 2.00% per year until year 3 and then at

Stock XYZ has a current dividend of $6.00 . The dividend is expected to grow at 2.00% per year until year 3 and then at 1.00% 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?

1.11%

5.89%

5.60%

6.00%

7.00%

6.19%

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