The stock of Turner United is priced at $46 a share and has a dividend yield of 2.1 percent. The firm pays constant annual dividends. What is the amount of the next dividend per share?

Question

Quizplus · Accepted Answer

To find the amount of the next dividend per share, we need to use the formula for dividend yield: dividend yield = annual dividend / stock price

We can rearrange this formula to solve for the annual dividend: annual dividend = dividend yield x stock price

Plugging in the given values, we get: 
annual dividend = 0.021 x 46 = $0.966

So the answer is C) $0.966.

The Stock of Turner United Is Priced at $46 a Share