Your broker recommends that you purchase XYZ Inc. at $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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The Answer of Your broker recommends that you purchase XYZ Inc. at $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?

Your Broker Recommends That You Purchase XYZ Inc