Question
XYZ has 40 million shares outstanding trading at $60, with EPS of $2.50 and a P/E multiple of 24. The company earns net income of
XYZ has 40 million shares outstanding trading at $60, with EPS of $2.50 and a P/E multiple of 24. The company earns net income of $200 million for the year and pays out an annual dividend of $1.50 per share. The board of directors is considering a 3 for 2 stock split.
What is the company's dividend yield after the stock split?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Before the stock split the dividend yield can be calculated as follows Dividend ...
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
