Cox Footwear pays a constant annual dividend. Last year, the dividend yield was 3.2 percent when the stock was selling for $35 a share. What is the current price of the stock if the current dividend yield is 2.9 percent

Respuesta :

Answer:

$38.62

Explanation:

Dividend yield = dividend / price

3.2% = dividend / $35

0.032 x 35 = dividend

dividend = $1.12

current price of the stock

2.9% = $1.12 / price

price = $1.12 / 0.029

= $38.62