Question

Currently Chester is paying a dividend of $2.53 (per share). If this dividend were raised by $3.64, given its current stock price what would be the Dividend Yield? a) $3.64 b) 5.9% c) $6.17 d)14.3%

Answer 1

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Step-by-step explanation:

To calculate the Dividend Yield, we need to divide the annual dividend per share by the current stock price and express it as a percentage.

Let's assume that the current stock price is represented by "P."

The current dividend per share is $2.53. If this dividend were raised by $3.64, the new dividend per share would be $2.53 + $3.64 = $6.17.

To calculate the Dividend Yield, we divide the new dividend per share ($6.17) by the current stock price (P) and express it as a percentage.

Dividend Yield = (Dividend per Share / Stock Price) x 100

In this case, the Dividend Yield is:

(6.17 / P) x 100

None of the options provided (a, b, c, or d) are the correct calculation for the Dividend Yield. The correct calculation should be expressed as a percentage, not a dollar amount.

Please note that the current stock price (represented by "P") is missing from the information provided, making it impossible to determine the exact Dividend Yield.