If one knows a stock price, the current dividend paid on ?stock owned and the current dividend yield, can the total number of stock in that company be figured out
Yes, you can calculate the total number of shares in a company if you know the stock price, current dividend paid, and the current dividend yield. Here's how you can do it:
Step 1: Understand the formula
To calculate the total number of shares, you need to use the formula:
Total Number of Shares = Total Dividend Paid / Dividend Per Share
Step 2: Calculate the Dividend Per Share
Dividend Per Share (DPS) can be calculated using the formula:
DPS = Dividend Yield * Stock Price
Step 3: Calculate the Total Dividend Paid
The Total Dividend Paid can be calculated by multiplying the Dividend Per Share (DPS) with the Total Number of Shares. However, since we don't know the Total Number of Shares initially, we need to rearrange the formula as follows:
Total Dividend Paid = Dividend Per Share * Total Number of Shares
Step 4: Substituting the formulas
Now, substitute the formula for Dividend Per Share (DPS) into the formula for Total Dividend Paid:
Total Dividend Paid = (Dividend Yield * Stock Price) * Total Number of Shares
Step 5: Rearrange the formula
Rearrange the formula to solve for Total Number of Shares:
Total Number of Shares = Total Dividend Paid / (Dividend Yield * Stock Price)
Step 6: Calculate the Total Number of Shares
Plug in the known values for Total Dividend Paid, Dividend Yield, and Stock Price, then calculate the Total Number of Shares using the formula from step 5.
By following these steps, you can figure out the total number of shares in a company based on the given information.