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Cox Footwear pays a constant annual dividend. Last year, the dividend yield was 3.2 percent when the stock was selling for $35 a share. What is the current price of the stock if the current dividend yield
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Cox Footwear pays a constant annual dividend. Last year, the dividend yield was 3.2 percent when the stock was selling for $35 a share. What is the current price of the stock if the current dividend yield is 2.9 percent

User Timetowonder
by
3.6k points

1 Answer

1 vote

Answer:

$38.62

Step-by-step explanation:

Dividend yield = dividend / price

3.2% = dividend / $35

0.032 x 35 = dividend

dividend = $1.12

current price of the stock

2.9% = $1.12 / price

price = $1.12 / 0.029

= $38.62

User Iceburg
by
3.5k points
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