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Find out the Current dividend per share:
Data
Stock price = $ 65
Return = 11%
Dividend Yield = 11/ 2 = 5.5 % (given)
Formula:
Dividend in one year = dividend yield * current price of stock
Dividend in one year = 5.5% * 65
Dividend in one year = 3.575
Current dividend or dividend in zero period:
Dividend in one year / (1 + dividend yield)
= 3.575 / (1 + 5.5%)
= 3.388
The enhancing qualitative characteristic of understand ability means that information should be understood by a those who are experts int eh interpretation of financial information
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