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25 October, 23:16

The firm will pay an annual dividend this year of $2 per share. the current market price of the stock is $40.00 per share. the book value of this stock is $24.00 per share. the earnings per share for this firm is $5.75. what is the current dividend yield of this stock?

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  1. 26 October, 01:11
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    5%

    Explanation:

    In this question, we have to find out the dividend yield which is shown below:

    Dividend yield = (Annual dividend : current market price) * 100

    where,

    Market price = $40 per share

    Annual dividend = $2 per share

    So, the dividend yield = ($2 per share : $40 per share) * 100

    = 5%

    All other information which is given is not relevant. Hence, ignored it
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