Suppose you have semi-annual dividend of 50 cents. The stock paying the dividend is currently trading at
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Question:
Suppose you have semi-annual dividend of 50 cents. The stock paying the dividend is currently trading at $20. Calculate the annual dividend yield.
Next, suppose you own this stock and get the yield just calculated. Suppose also the stock price goes up another $10. Did your yield change at all, and if so by how much. If not, why not ?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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