A stock currently sells for $44. The dividend yield is 3.3 percent and the dividend growth rate is 4.6 percent. What is the amou

Question

3 years ago

13

nt of the dividend that was just paid?

1 answer:

blondinia [14] · Answer 1 · 2022-05-09T19:40:53+03:00

Answer:

Amount of Dividend that was just paid is $1.39

Explanation:

Dividend yield = Dividend for next period / Current price

Dividend for next period = 44 * 3.3%)

=$1.452

Hence, dividend that was just paid=Dividend for next period*Present value of discounting factor(rate%,time period)

= 1,452 / (1+0.046)

= 1.452 / 1.046

= 1.3881

= $1.39