Determining the post-stock dividend yield

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After Scott's company had a really good year, they decided that they were going to issue a stock dividend. They declared that this stock dividend was going to be a 25% stock dividend. Prior to the stock dividend, the market price of the stock was $18. The stock will pay a quarterly cash dividend of $0.08/share after the stock dividend. If the $0.08/share dividend is maintained over the next year, what is the post-stock dividend yield?

Reference no: EM132497967

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