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 ...

c 9 Stock price Dividend next ...

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

Question:

The XYZ Company, whose is currently selling for $40 per share, is expected to pay a $2.00 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%
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...