The stock price is $68.75 when BBM industries pay a quarterly dividend of $1.60 and the dividend yield on its stock is reported at 4.40%.
What is Dividend?
A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestments.
Calculation;
We know the formula of dividend yield which is given below;
Dividend yield = (Quarterly dividend x 4) / Price
Dividend yield=4.40%.
Quarterly dividend=$1.60
4.40%=$1.60 x 4/ Price
4.40%=6.4/Price
Price=4.40%/6.4
Price=4.40 x 100/6.4
Stock Price=$68.75
Hence, the stock price is $68.75
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