The next dividend payment by Sunshine Markets will be RM2

Finance Jan 17, 2021

The next dividend payment by Sunshine Markets will be RM2.35 per share. The dividends are anticipated to maintain a 4.5 percent growth rate forever. The stock currently sells for RM70 per share. What is the dividend yield? 0 3.20 percent 3.36 percent 4.81 percent 4.21 percent 3.54 percent

Expert Solution

Ans

Here, as we know

Dividend yield = (Next dividend) /(current price)

= (RM2.35)/(RM70)

= 0.0335714 or 3.35714%

Hence, option (2) is correct that is (3.36%)

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