A stock's price today is $20.75, and it is expected to pay out a dividend of...

A stock's price today is $20.75, and it is expected to pay out a dividend of $0.50 per share in one year. What is the stock's expected dividend yield? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage). For example, enter .0153 instead of 1.53%.

Expert Solution

Dividend yield is the overall percentage of dividend which is paid out of the current market price of the shares of company.

Expected dividend yield= (expected dividend/current share price)

= (.50/20.75)

= .0240963 or 2.40963%

jeff jeffy answered 2 years ago

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