A company$$s current stock price is $500$p$.$ The expected share price in one year is $5\mathrm{.}10$ pounds. The firm is expected to issue dividends of $2\mathrm{.}5$p at the end of the year, and $2$p in two years. Compute the stock$$s dividend yield for the current year.

Question $10$Answer

a$.$

$2\mathrm{.}23\%$

b$.$

$2\mathrm{.}5\%$

c$.$

$2\mathrm{.}7\%$

d$.$

$3\mathrm{.}0\%$