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What is the dividend yield from today to year one

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Reference no: EM131995405

Stock XYZ has a current dividend of $6.00 . The dividend is expected to grow at 4.00% per year until year 3 and then at 3.00% 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?

7.00%

3.73%

4.00%

4.12%

3.93%

3.07%

Reference no: EM131995405

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