Assume Coleco pays an annual dividend of $1.46 and has a share price of $37.58. It...

Question

Question

business finance

Answer 1

Answer #1

Dividend Yield = Annual Dividend / Current Share Price

= $1.46 / 37.58

Dividend Yield = $0.0389

Now,

Dividend Increase to $1.79 but Dividend Yield remain same. Therefore, New Share Price is

Dividend Yield = Annual Dividend / New Share Price

0.0389 = $1.79 / New Share Price

New Share Price = 1.79 / 0.0389

= $46.015 or $46.02

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Answer 2

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