If a stock pays an annual dividend of $2.50 and the current stock price is $50, what is the dividend yield? A) 4% B) 5% C) 6% D) 7%

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section7.4: Valuing Common Stocks
Problem 3ST
icon
Related questions
Question
100%
If a stock pays an annual dividend of $2.50 and the
current stock price is $50, what is the dividend yield?
A) 4%
B) 5%
C) 6%
D) 7%
Transcribed Image Text:If a stock pays an annual dividend of $2.50 and the current stock price is $50, what is the dividend yield? A) 4% B) 5% C) 6% D) 7%
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning