POTENTIAL INVESTORS OF XYZ CORP. STOCK ARE LOOKING FOR A 20% EXPEC...

11. Potential investors of XYZ Corp. stock are looking for a 20% expected return. XYZ currently trades at $15 per share and has just paid an annual dividend of $2 per share. Based on the above what is the implied growth rate in dividends for XYZ Corp.? A) 5.00% B) 5.88% C) 6.25% D) 6.67% E) 7.14%