A company paid an annual dividend of $.67 per share in 2018. The firm is expected...

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Question

A company paid an annual dividend of $.67 per share in 2018. The firm is expected...

A company paid an annual dividend of $.67 per share in 2018. The firm is expected to increase its dividend in 2019 and beyond by 2.50%. If you paid $21.95 per share for the stock in 2017, what is your dividend yield for 2019?

A. 3.05%

B. 3.14%

C. 2.96%

D. 2.50%

Hence: its not A OR C. I got it wrong.

business finance

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Answer 1

Answer #1

Annual dividend (2018) = $0.67

Annual dividend (2019) = $0.67 * 1.025 = $0.69

Dividend Yield = Annual Dividend / Current price

= $0.69/ $21.95

= 0.0314 or 3.14%

Option 'B' is correct

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Answer 2

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A company paid an annual dividend of $.67 per share in 2018. The firm is expected...

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Add Answer to: A company paid an annual dividend of $.67 per share in 2018. The firm is expected...

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A company paid an annual dividend of $.67 per share in 2018. The firm is expected...