Question

The stock of pepito organic foods is priced at $45 per share and has a dividend yield of 2.2 percent. the firm pays constant annual dividends. what is the amount of the next dividend per share? group of answer choices

O $0.99
O $1.10
O $1.15
O $0.91
O $1.72

Answer 1

The amount of the next dividend per share is a)$0.99.

Step-by-step explanation:

The dividend yield is calculated by dividing the annual dividend payment by the stock price. In this case, the dividend yield is 2.2 percent. Since the stock price is $45 per share, we can calculate the annual dividend payment as follows:

Dividend Yield = Annual Dividend Payment / Stock Price

2.2% = Annual Dividend Payment / $45

Annual Dividend Payment = 2.2% * $45 = $0.99

Therefore, the amount of the next dividend per share is $0.99.