Please provide solution this financial accounting question not use ai The stock of Crest field manufacturing recently paid a dividend of $4.50 pershare. The company expects its dividends to grow at a rate of 5% per year. If thecurrent stock price is $50, what is the dividend yield?

Step 1: Definition of Dividend YieldDividend yield is the percentage of a company's stock price that…

Answered: The stock of Crest field manufacturing…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2P

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The stock of Crest field manufacturing recently paid a dividend of $4.50 per share. The company expects its dividends to grow at a rate of 5% per year. If the current stock price is $50, what is the dividend yield?