Question

Assume Andrews is paying a dividend of $1.38 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield?

Stock Market Summary
Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E
Andrews $85.19 $15.17 1,990,360 $170 $48.78 $7.13 $0.00 0.0% 11.


A.) 1.91%

B.) 1.47%

C.) 68.5%

D.) 1.17%

Answer 1

The new dividend yield after a 10% stock price increase, with a dividend of $1.38 per share, is 1.47%.

Step-by-step explanation:

If Andrews is paying a dividend of $1.38 per share and the stock price rose by 10%, to calculate the new dividend yield, you would take the dividend amount and divide it by the new stock price. The original stock price is $85.19; a 10% increase would make the new stock price $85.19 * 1.10 = $93.709. Now, the dividend yield is calculated using the formula Dividend Yield = (Dividend per Share / Price per Share) * 100%. Therefore, Dividend Yield = ($1.38 / $93.709) * 100%.

To find the correct answer, you will simply do the calculation: Dividend Yield = ($1.38 / $93.709) * 100% = 1.47%.

So the correct answer is B.) 1.47%.

Answer 2

Dividend Yield = 1.473 %

so correct option is B.) 1.47%

Step-by-step explanation:

given data

dividend = $1.38 per share

stock price rose = 10%

Close Change Shares MarketCap($M) Book Value EPS Dividend Yield P/E

$85.19 $15.17 1,990,360 $170 $48.78 $7.13 $0.00 0.0% 11

solution

we know here Price of share is = $85.19

so price increase will be here as

price increase = $85.19 × 10%

price increase = $8.519

and price after 10 % increase will be

price after 10 % increase = $8.519 + $85.19

price after 10 % increase = $93.7090

and dividend is $1.38

so

Dividend Yield =
`(dividend)/(price)` ...................1

Dividend Yield =
`(1.38)/(93.7090)`

Dividend Yield = 0.01473

Dividend Yield = 1.473 %

so correct option is B.) 1.47%