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
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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