FIN 550 4-1 Milestone TwoFIN 550: 4-1 Milestone TwoSouthern New Hampshire UniversityStock Assessment To evaluate the stock value, we calculated the dividend yield, for each year using a formula: Dividend Yield = (Dividend per Share / Stock Price) * 100 Based on the data provided in the Final Projec...
Stock Assessment To evaluate the stock value, we calculated the dividend yield, for each year
using a formula: Dividend Yield = (Dividend per Share / Stock Price) * 100 Based on the data
provided in the Final Project Student Spreadsheet, the dividend yields for 2020, 2021 and
2022 were as follows; 2020. 2.95%, 2021. 2.83% and 2022. 2.64%. The new dividend per
share was determined by adding $1.75 to the existing dividends. The recent dividend yields
were calculated using the mentioned method. For 2020; $5.77 (4.02 + 1.75) with a dividend
yield of 4.23% For 2021; $6.01 (4.26 + 1.75) with a dividend yield of 4.00% For 2022; $6.28
(4.53 +1.75) with a dividend yield of 3.66% In case of a stock split at a ratio of two shares for
one I recalculated the stock price, dividend per share and shares. Despite the stock split the
dividend yields have remained consistent over the years. In 2020; 2.95%, 2021; 2.83%, and
2022; 2.64%. The increase in dividends results, in higher dividend yields that may attract
income focused investors potentially enhancing both stock price and shareholder value.
Nevertheless, this could also limit the funds for investing into the company's expansion.
Higher dividends can indicate a position potentially leading to an uptick, in stock prices
(Hayes, 2023). A stock split can make shares more accessible to investors enhancing market
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