Dividend Yield A stocks dividend in 240 per share and its di

Dividend Yield. A stocks dividend in $2.40 per share and its dividend yield is 8%. What is the stock price?

Solution

Divident yield = Dividend per share / share price

Therefore we have 108/100=2.4/share price

Hence, we have share price = 2.4 x 100/108 = 2.22

Therefore the share price is $ 2.22 per share.