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
| +70 | Any tips for sleeping well? | 37 | 5h |
| +61 | Wealthy Parents / Jaded | 22 | 25m |
| +44 | Venezuela Debt Restructuring - LAZ vs CVP | 16 | 14h |
| +40 | Background check issue IB Full Time | 23 | 36m |
| +39 | How are hours rn for SA (interns) | 23 | 9h |
| +27 | Investment Banking in Mexico | 7 | 19h |
| +26 | HL vs WB | 19 | 1d |
| +24 | MM bottom bucket bonus | 9 | 1d |
| +24 | UBS GIG, LevFin, FSG Interns working Sundays and 85 hour weeks their first week? | 11 | 1d |
| +21 | Excel macros for QOL formatting | 0 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
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.
Modi officiis nihil exercitationem ut nam rerum. Non fugiat eligendi sint ea saepe commodi quo. Quae sunt ut porro labore officia ut. Hic qui assumenda numquam ea voluptatem harum ipsum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...