Question

A stock currently sells for $48. The dividend yield is 3.7 percent and the dividend growth rate is 5 percent. What is the amount of the dividend that was just paid?

Answer 1

The amount of the dividend that was just paid is $1.776 per share, calculated using the stock's current price of $48 and a dividend yield of 3.7%.

Step-by-step explanation:

To calculate the dividend that was just paid based on a stock's current price and dividend yield, you can use the following formula:

Dividend = Current Stock Price × Dividend Yield

Given that the stock currently sells for $48 and the dividend yield is 3.7%, the calculation would be:

Dividend = $48 × 0.037

Dividend = $1.776

Therefore, the amount of the dividend that was just paid is $1.776 per share.