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Setler79 [48]
3 years ago
13

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

nt of the dividend that was just paid?
Business
1 answer:
blondinia [14]3 years ago
8 0

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

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