The shawnee company pais a dividend of $0.42 per share last year. if the current slling pricce of the stock is $27.38, what is the current yield on the stock
To calculate the current yield on a stock, you need to divide the annual dividend per share by the current market price per share and then multiply by 100 to express it as a percentage.
In this case, the annual dividend per share is $0.42, and the current selling price of the stock is $27.38. Therefore, the calculation to find the current yield would be:
Current Yield = (Annual Dividend / Current Market Price) * 100
Let's plug in the values and calculate:
Current Yield = (0.42 / 27.38) * 100
Now, performing the calculation:
Current Yield = 0.0153 * 100
Current Yield = 1.53%
Therefore, the current yield on the stock is approximately 1.53%.