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What is the dividend yield ratio

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Question - 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?

Reference no: EM132601007

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