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?

Answer rating: 100% (QA)

The dividend yield is calculated by dividing the annual dividend per share by ... View the full answer