Answer to Question #159994 in Financial Math for kinda

Question

What is the dividend yield of a stock of current price $35 and dividend paid $10?

Answer 1

ANSWER

The dividends yield is a ratio (denoted by DYR) between amount of didivend paid by company tp its shareholders (denoted by DP) and current price of stock (denoted by CP). The DYR shows how much a company can pay out in dividends each period relative to its CP. DYR is displayed as a percantage.

It is easy to write the formula for DYR

$DYR=DP/CP*100$

Accordint to the question, PD is equal to $10 and CP is equal to $35.

Hence,

$DYR=10/35*100=28.57$ precent.