May 29, 2009
What is the equation to figure out how much a stock is trading at?
~~~J~~~ asked:
Example:
Example:
If a company paid a dividend of $5.10 per share and the yield was 8.14%, how much is the stock currently trading at?
Dividend divided by stock price equals yield (%)
Thank you!
Alfredo
Comments on What is the equation to figure out how much a stock is trading at?
Carrie
The formula for calculation of Yield is as follows:
Yield (%) = Dividend per share/Current market price of share
So in this case, current trading price is = $5.10/8.14% = $62.65
Cheers
Ajay
Miles
stock price equals Dividend divided by yield (%)