Question

Assume Andrews is paying a dividend of $1.38 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield?
Stock Market Summary
Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E
Andrews $85.19 $15.17 1,990,360 $170 $48.78 $7.13 $0.00 0.0% 11.


A.) 1.91%

B.) 1.47%

C.) 68.5%

D.) 1.17%

Answer 1

Answer:

Dividend Yield = 1.473  %

so correct option is B.) 1.47%

Explanation:

given data

dividend = $1.38 per share

stock price rose = 10%

Close  Change Shares  MarketCap($M) Book Value EPS Dividend Yield P/E

$85.19 $15.17   1,990,360   $170                $48.78      $7.13  $0.00    0.0%  11

solution

we know here Price of share is = $85.19

so price increase will be here as

price increase = $85.19 × 10%

price increase = $8.519

and price after 10 % increase will be

price after 10 % increase = $8.519 + $85.19

price after 10 % increase = $93.7090

and dividend is $1.38

so

Dividend Yield = $\frac{dividend}{price}$    ...................1

Dividend Yield = $\frac{1.38}{93.7090}$

Dividend Yield = 0.01473

Dividend Yield = 1.473  %

so correct option is B.) 1.47%