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1.) Verizon stock (NYSE: VZ) currently pays a 4.19% APY dividend each year. Assume that this dividend pays out continuously (it doesn't, it's paid quarterly
1.) Verizon stock (NYSE: VZ) currently pays a 4.19% APY dividend each year. Assume that this dividend pays out continuously (it doesn't, it's paid quarterly to those who own the stock on the ex-dividend date(s), but we'll ignore that for the moment) By this I mean that we will assume your stock + dividend cash value follows the formula: PO - Poe (2 points) a) How much money would you need to invest today such that this 4.19% APY dividend is equivalent to a $25,000/yr salary today in dividends alone? Answer: (3 points) b.) How much money would you need to invest today (Po) to have the amount given in part n.) and, consequently, the resulting $25,000/yr salary after 15 years
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