Gen-Y corporation's current stock price is $50 per share and investor's return is 12%. If current dividends are $4 per share, Determine last year's dividend.

Question

Quizplus · Accepted Answer

The correct answer is D. The dividend yield is the annual dividend per share divided by the current stock price. The dividend yield for Gen-Y corporation is 12%, so the annual dividend per share is $50 * 12% = $6. The last year's dividend is the annual dividend per share divided by the dividend growth rate. The dividend growth rate is not given, so we cannot determine the last year's dividend.

Gen-Y Corporation's Current Stock Price Is $50 Per Share and Investor's