Company BestWare just paid a dividend of $2.00, and it's dividend is expected to grow at a constant rate of 3.55%. The company's stock is currently selling at $75.30. What's the company's dividend yield?
Company BestWare just paid a dividend of $2.00, and it's dividend is expected to grow at a constant rate of 3.55%. The company's stock is currently selling at $75.30. What's the company's dividend yield?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Company BestWare just paid a dividend of $2.00, and it's dividend is expected to grow at a constant rate of 3.55%. The company's stock is currently selling at $75.30.
What's the company's dividend yield?
Expert Solution
Step 1
Dividend Yield
Dividend yield refers to the financial ratio, which is measured based on the annual dividend and the current market price of the company. It is always expressed in percentage and keeps on changing as the annual dividend or the market price of share changes.
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