Question
In: Finance
ABC, Company is expected to pay a dividends of $2.18 on their common stock. The company...
ABC, Company is expected to pay a dividends of $2.18 on their common stock. The company expects the growth rate to be 3.2% infinitely. If today's price of the stock is $72.57, what is the dividend yield?
Solutions
Expert Solution
The dividend yield is computed as follows:
= Expected dividend / current price of stock
= $ 2.18 / $ 72.57
= 3% Approximately
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