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What effect it will have on the price of stock and why

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a Flock stock is known to be one of the famous company among investors where people are always ready to invest. Flock Stock will pay the dividend of $3.6 this year. Its dividend yield is 10%. At what price is the stock selling?

b Consider the change in dividend yield from 10% to 6%. What effect it will have on the price of stock and why? Give your answer in not more than three sentences.

Reference no: EM132544038

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