For the past six years, the price of Slippery Rock stock has been increasing at a rate of 8.21 percent a year. Currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. What is the dividend yield? 3.69 percent 2.75 percent 3.44 percent 4.28 percent 3.20 percent

Respuesta :

Answer:

3.44 percent

Explanation:

Required return = Dividend yield + growth rate

Dividend yield = Required return -  growth rate

                        = 11.65% - 8.21%  

                        = 3.44%

Therefore, The dividend yield is 3.44%