I'm currently doing some practice problems for a test I have coming up. For some reason this one problem is getting to me, i feel like i don't have enough information to answer the question. Or maybe i'm just not understanding something.
If anyone could help, I'd appreciate it
"Assume that ABC stock trades at $125 and the payout ratio is 70%, what is the yield on the stock?"
I feel like the question is incomplete
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You use the payout ratio to calculate the dividend and then take the dividend over the share price. Yield is referring to dividend yield, in this problem.
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