the sawnee company paid a dividend of $0.42 per share last year. if the current selling price of the stock is $27.38 what is the current yield on the stock
0.42 / 27.38 = 0.0153 = 1.53%
Rate of income generated from astock in the form of regular dividends and it is represented in percentage. it is calculated as
annual dividend payment/current share price of stock,so the answer is
=.42/27.38=.01534
=.01534x100=1.53
To calculate the current yield on a stock, you need to divide the annual dividend per share by the current selling price of the stock.
In this case, the Sawnee Company paid a dividend of $0.42 per share last year and the current selling price of the stock is $27.38.
To calculate the current yield, you divide the annual dividend per share ($0.42) by the current selling price of the stock ($27.38):
Current Yield = Annual Dividend / Current Selling Price
Current Yield = $0.42 / $27.38
Now, let's perform the calculation:
Current Yield = 0.0153
The current yield, rounded to four decimal places, is approximately 0.0153 or 1.53%.