Silicon Ltd. has a current stock price of $59.6 per share, is expected to pay an annual dividend of $2.6 in one year, and its expected price right after paying that dividend is $37. What is the expected dividend yield for Silicon Ltd.? (State your answer in percentage terms and round to 2 decimal places

The **dividend yield** is calculated using the formula:

\[
\text{Dividend Yield} = \left( \frac{\text{Dividend}}{\text{Current Stock Price}} \right) \times 100
\]

In this case:
- The **dividend** is $2.60.
- The **current stock price** is $59.60.

Now, let's calculate the dividend yield:

\[
\text{Dividend Yield} = \left( \frac{2.60}{59.60} \right) \times 100
\]

\[
\text{Dividend Yield} = 4.36\%
\]

So, the expected dividend yield for Silicon Ltd. is **4.36%**.

Would you like more details on any part of this calculation? Here are 5 related questions to explore:

1. How does dividend yield relate to total return on investment?
2. What factors influence a company's dividend yield?
3. How can a declining stock price affect dividend yield?
4. What is the difference between dividend yield and dividend payout ratio?
5. How does the expected stock price impact future returns?

**Tip:** A higher dividend yield can signal an attractive income investment, but always consider the company's financial stability before investing!

Silicon Ltd. has a current stock price of $59.6 per share, is expected to pay an annual dividend of $2.6 in one year, and its expected price right after paying that dividend is $37. What is the expected dividend yield for Silicon Ltd.? (State your answer in percentage terms and round to 2 decimal places)

Learn how to calculate the dividend yield for Silicon Ltd. with a current stock price of $59.60 and an annual dividend of $2.60. This guide provides a step-by-step solution, ideal for finance students or investors looking to understand dividend yield calculations.

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