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If DIV0 is the dividend just paid by a stock that you own, DIV1 is the next expected dividend, P0 is the price you paid for the stock and P1 is the price you expect to receive when you sell it, then the dividend yield can be calculated as __________. dividend yield = (DIV1 + P1)/P0 dividend yield = DIV1/P0 dividend yield - DIV0/P0 dividend yield = DIV1/P1

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Answer:

Option B Dividend Yield = DIV1/P0

Explanation:

The reason is that the return received (dividend) now D1 must be appraised by the investment made in the shares which is the amount paid when the investment was made and here is presented by Po.

So the dividend yield is:

Dividend Yield = DIV1/Po

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