Question: 1 . Your broker recon-mends that you purchase XYZ Inc. at S 60 . The stock pays a $2. 40 dividend which (like its

1 . Your broker recon-mends that you purchase XYZ Inc. at S

1 . Your broker recon-mends that you purchase XYZ Inc. at S 60 . The stock pays a $2. 40 dividend which (like its per share earnings) is expected to grow annually at 8 percent. If you want to earn 12 percent on your funds, is this a good buy?

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