Question

Currently andrews is paying a dividend of $12.00 (per share). if this dividend were raised by $3.64, given its current stock price what would be the dividend yield?

a. 11.1%
b. $15.64
c. $3.64
d. 14.5%

Answer 1

To calculate the dividend yield, divide the annual dividend per share by the current stock price and multiply by 100%. Therefore correct option is B

Step-by-step explanation:

The dividend yield is calculated by dividing the annual dividend per share by the current stock price, and then multiplying by 100% to express it as a percentage. In this case, if Andrews is currently paying a dividend of $12.00 per share and it is raised by $3.64, we need to determine the new dividend yield.

Let's say the current stock price is $100.00 per share.

The new dividend per share would be $12.00 + $3.64 = $15.64.

The dividend yield would then be ($15.64 / $100.00) * 100% = 15.64%.