Final answer:
To calculate the next dividend per share, multiply the dividend yield of 2.8 percent by the stock price of $31. The resulting next dividend per share for Webster's Foods will be $0.868.
Step-by-step explanation:
The student has asked how to calculate the amount of the next dividend per share for Webster's Foods given its stock price and dividend yield. The dividend yield is provided as 2.8 percent and the stock price is $31 a share. To find the dividend amount, one would multiply the dividend yield by the stock price.
Therefore, the calculation is as follows: 0.028 (dividend yield) × $31 (stock price) = $0.868 per share. This is the expected dividend per share that Webster's Foods will pay in the next period.The dividend yield is a financial ratio that shows the amount of cash a company returns to its shareholders in the form of dividends.
It is calculated by dividing the annual dividend per share by the stock price per share.In this case, we know that the stock price is $31 per share and the dividend yield is 2.8%. To find the amount of the next dividend per share, we can use the following formula:
Next Dividend per Share = Stock Price per Share * Dividend Yield
Substituting the given values, we have:
Next Dividend per Share = $31 * 2.8% = $0.868
Therefore, the amount of the next dividend per share for Webster's Foods is $0.868.