Assignment:
ABC Corporation just paid a dividend of $ 2.00 per share. A Wall Street Analyst predicts that the current dividend is likely to increase at constant rate of 8% per year for indefinite period. An investor wants to make a minimum return of 12% by investing in Shares of ABC. If sells these shares after one year, his Dividend yield % would be:
a. 12.00%
b. 20.00%
c. 4.00%
d. 8.00%