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12 November, 04:15

At the beginning of the year, an investor buys 1,000 shares of XYZ stock, purchased at $33 per share. Subsequently, the stock rises to $40 by the end of the year and the stock pays a $4 dividend during the year. By the end of the following year, the stock has fallen to $25 and pays the same $4 dividend. What is the stock's dividend yield? A. 4%B. 10%C. 12%D. 16%

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  1. 12 November, 04:29
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    Answer: C - 12%

    Explanation: Dividend yield is calculated as the annual dividend divided by the share price.

    The dividend yield for the stock is calculated as:

    = Annual Dividend / share price

    = $4/$33

    =12.12

    =12%
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