Annual dividend divided by current stock price is called

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Gerold's Travel Service just paid $1.79 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 3.2 percent. If you require a 10.5 percent rate of return, how much are you willing to pay to purchase one share of this stock?

The Good Life offers a common stock that pays an annual dividend of $2 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 9 percent return on your equity investments?

Next year's annual dividend divided by the current stock price is called the:

Reference no: EM131332760

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