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XYZ company has the following: Stock market price, December 31, 2018: $80 Common stock ($5 par): $3,000,000 Net Income for year 2018: $1,700,000 Retained Earnings

XYZ company has the following: Stock market price, December 31, 2018: $80 Common stock ($5 par): $3,000,000 Net Income for year 2018: $1,700,000 Retained Earnings January 1, 2018: $1,900,000 If on December 31, 2018, the company wants to pay the maximum amount it can in dividends to its shareholders, what is the dividend yield ratio? Select one: a. 7.5% b. 4% c. 3.5% d. 6%

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