Question: You are trying to value Globals common stock using a one period model. Suppose you expect Global to pay out a dividend of $2.50 next

You are trying to value Globals common stock using a one period model. Suppose you expect Global to pay out a dividend of $2.50 next year and to trade at $75 just after the dividend has been paid. Discount rate is 12% per year. What will be the dividend yield?

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