Stock pays constant annual dividend


Julie owns the stock with market price of $43 for each share. This stock pays constant annual dividend of $1.34 a share. If the price of stock suddenly falls to $31 a share, you would expect the:

I. Dividend yield to increase.

II. Dividend yield to increase and capital gains yield to increase

III. Capital gains yield to increase.

IV. Dividend yield to decrease and capital gains yield to decrease

V. Dividend yield to decrease

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Finance Basics: Stock pays constant annual dividend
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