A company with a $.75/quarter cash dividend and a 7% dividend yield will have a share value of$42.86.

Name: A company with a $.75/quarter cash dividend and a 7% dividend yield will have a share value of$42.86.
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Quizplus · Accepted Answer

The share value can be calculated by dividing the annual dividend by the dividend yield. The annual dividend is $.75/quarter * 4 quarters = $3.00/year. Dividing this by the dividend yield of 7% (or 0.07) gives a share value of $42.86 ($3.00 / 0.07 = $42.86).

A Company with a