Answer to Question #197657 in Financial Math for samikh

Question

Flare Stock will pay the dividend of $2.4 this year. Its dividend yield is 10%. At what price is the stock selling?

Answer 1

$Selling \space Price=\frac{Dividend}{Dividend\space Yield}$

$=\frac{\$2.4}{10\%}$

$=\$24$

The selling price of the stock is $24