Question

A stock currently sells for $65. The dividend yield is 3.5 percent and the dividend growth rate is 4.8 percent. What is the amount of the dividend to be paid in one year

Answer 1

$2.275

Step-by-step explanation:

Calculation for the amount of the dividend to be paid in one year

Using this formula

D1 =Dividend yield* Stock Amount

Let plug in the formula

D1= .035($65)

D1= $2.275

Therefore the amount of the dividend to be paid in one year will be $2.275