The Cool Cummings Company has current stock price of $62.40, has a required rate of return of 9%, and is expected to grow at a constant rate of 4% in the foreseeable future. If the firm’s last...

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The Cool Cummings Company has current stock price of $62.40, has a required rate of return of 9%, and is expected to grow at a constant rate of 4% in the foreseeable future. If the firm’s last dividend paid was $3, what is the expected dividend yield? A. 5.00% B. 4.81% C. 5.24% D. 4.00% E. None of these are correct

Answered 40 days AfterNov 29, 2021

Answer To: The Cool Cummings Company has current stock price of $62.40, has a required rate of return of 9%,...

Khushboo answered on Jan 08 2022

122 Votes

Dividend yield = Annual dividend paid per share/ Price per share
= 3*1.04/62.40
= 3.12/62.40
=5%

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The Cool Cummings Company has current stock price of $62.40, has a required rate of return of 9%, and is expected to grow at a constant rate of 4% in the foreseeable future. If the firm’s last...

Answer To: The Cool Cummings Company has current stock price of $62.40, has a required rate of return of 9%,...

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