In: Finance
Given the following information, what is the percentage dividend yield between today and period 1? Today’s Dividend = $3.69 Expected Growth rate in dividends = 3.14 Discount Rate (Required return) = 8.53 Calculate your answer to two decimal places (e.g., 2.51)
Answer:
Discount Rate = 8.53%
Growth Rate = 3.14%
Dividend Yield = Discount Rate – Growth Rate
Dividend Yield = 8.53% – 3.14%
Dividend Yield = 5.39%