Question

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent

Answer 1

3.44%

Step-by-step explanation:

Dividend yield =Required return of 11.65 percent-Increasing at a rate of 8.21 percent

Hence:

= .1165-.0821

= .0344 *100

=3.44%

Therefore Dividend Yield is 3.44%