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13 May, 14:02

The next dividend payment by Hoffman, Inc., will be $2.50 per share. The dividends are anticipated to maintain a growth rate of 5.75 percent forever. Assume the stock currently sells for $48.60 per share. a. What is the dividend yield

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  1. 13 May, 14:27
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    The dividend yield is 5.14%

    Explanation:

    In order to calculate the dividend yield we would have to calculate the following formula:

    Dividend yield=Dividend/Beginning value

    According to the given data we have the following:

    Dividend=$2.50 per share

    Beginning value = $48.60 per share

    Therefore, Dividend yield=$2.5/$48.6

    Dividend yield=5.14%

    The dividend yield is 5.14%
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