Explanation:
Trailing dividend yield is calculated using the most recent actual dividend and the current stock price:
Formula: Trailing Dividend Yield = (Most Recent Annual Dividend ÷ Current Stock Price) × 100%
Given:
$1.0$10Calculation:
Trailing Dividend Yield = ($1.0 ÷ $10) × 100% = 10%
Important Notes:
$1.0), not the projected Year 2 dividend ($2.0)Ultimate access to all questions.
| Year 1 (Actual) | Year 2 (Projected) | |
|---|---|---|
| Dividend yield | $1.0 | $2.0 |
The current stock price at the end of Year 1 is $10. The analyst forecasts a 30% revenue growth in Year 2. The trailing dividend yield is:
A
10%
B
13%
C
20%
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