Referring to the stocks valuation problem, what is stock A's dividends yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Question

BlackTom AI · Accepted Answer

Dividend yield = (annual dividend per share) / (current price per share) × 100%.

1) Relevant knowledge points and concepts
- Dividend yield measures the cash return an investor receives from dividends relative to the stock price.
- If the stock follows the Gordon (constant-growth) model, the price P0 = D1 / (r − g), where D1 is next year’s dividend, r is required return, and g is dividend growth rate.
- Rearranging gives D1/P0 = r − g. Thus, for a stock priced by the constant-growth model, the dividend yield (D1/P0) equals r − g.

2) Complete reasoning process (step by step)
- Identify whether you have D0 (most recent dividend), D1 (dividend next year), P0 (current price), r, and g.
- If D1 and P0 are given directly, compute dividend yield = (D1 / P0) × 100%.
- If D0 and g are given, compute D1 = D0 × (1 + g), then yield = (D1 / P0) × 100%.
- If P0, r, and g are given and the stock is valued by the Gordon model, use yield = r − g (no intermediate D needed).

3) Intermediate steps for calculations (symbolic example)
- Given D0 and g: D1 = D0(1+g).
- Dividend yield = (D1 / P0) × 100% = [D0(1+g) / P0] × 100%.
- Using Gordon model with known r and g: yield = r − g (express as percentage).

4) Why the correct answer is correct
- The correct option will numerically equal the computed (D1/P0)×100% or r − g if the Gordon model applies. This is a direct application of the dividend-yield definition and the algebraic rearrangement of the Gordon valuation formula.

5) Why other options are incorrect
- Any option that does not equal the computed dividend yield (to two decimal places) is incorrect. For example, if your calculation gives 5.14%, then 4.53%, 5.92%, 6.57%, 3.49%, and 5.75% would all be incorrect because they do not match the derived D1/P0 value.

6) Conclusion / request for missing data
- I cannot confirm which multiple-choice option is the correct percentage without the original numbers (D0 or D1, P0, or r and g) from the referenced “stocks valuation problem.” Provide the stock’s dividend(s), current price, or the required return and growth rate, and I will compute the dividend yield step-by-step and confirm the exact choice.

Referring to the stocks valuation problem, what is stock A's dividends yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)单项选择题

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