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A stock currently sells for $49. The dividend yield is 3.4 percent and the dividend growth rate is 4.7 percent. What is the amount of the dividend to be paid in one year
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33 votes
33 votes
A stock currently sells for $49. The dividend yield is 3.4 percent and the dividend growth rate is 4.7 percent. What is the amount of the dividend to be paid in one year

User LIAL
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1 Answer

11 votes
11 votes

Answer: $1.67

Step-by-step explanation:

Current price of stock = $49

Dividend yield = 3.4%

Dividend growth rate = 4.7%

To get the amount of the dividend to be paid in one year, we calculate it as:

Dividend yield = Dividend for next period/Current price

=49 × 3.4%

= 49 × 0.034

=$1.67

User Don Roby
by
3.2k points
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