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N76 [4]
2 years ago
15

The next dividend payment by Hoffman, Inc., will be $3.10 per share. The dividends are anticipated to maintain a growth rate of

6.25 percent forever. Assume the stock currently sells for $49.80 per share. a. What is the dividend yield
Business
1 answer:
Pani-rosa [81]2 years ago
6 0

Answer:

6.2249%

Explanation:

Dividend yield = next dividend paid / price of the stock

Dividend yield is one of the components used in calculating the total return of a stock.

Total return = price return + dividend yield

price return is the return on a stock as a result of price appreciation

Dividend yield = $3.10 / $49.80 = 0.062249 = 6.2249%

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