Question

2. Global Cable paid dividends of $0.28 and $0.16 per share last year. Given yesterday's closing price was $11.27, determine the current yield on the stock? Round to the nearest tenth.

Answer 1

3.90%

Explanation:

Relevant Data provided as per the question below:

Annual dividend = $0.28 and $0.16

Current per share = $11.27

According to the given situation, the calculation of the current yield of the stock is shown below:-

Current yield is

`= (Annual\ dividend)/(Current\ share\ price) * 100\\\\ = (0.28 + 0.16)/(11.27) * 100`

`= (0.44)/(11.27) * 100`

= 3.90%

Therefore for computing the current yield of the stock we simply applied the above formula.