A firm pays dividends once per year, at the end of the year. It generated $300 million
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Question:
A firm pays dividends once per year, at the end of the year. It generated $300
million in free cash flow this
year, of which $75 million was used to pay all its interest obligations and
$100 million was invested in new projects. The remainder was paid out as dividends, with the same
amount paid for each share owned. If the firm has 80 million shares outstanding
and a stock price of
$42.00 at the end of the year, what is the dividend yield?
Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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