Question #197392

Flare Stock will pay the dividend of $2.4 this year. Its dividend yield is 10%. At what price is the stock selling?

Expert's answer

The dividend amount that is paid to the investors by the company, represented in percentage form is term as the dividend yield.

Computation of the selling price:

"Selling \\;price = \\frac{Dividend}{Dividend \\; yield} \\\\\n\n= \\frac{2.4}{0.1} \\\\\n\n= 24"

Hence, the selling price of the stock is $24.

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