A company earned $820 million and paid out 20% of their earnings in dividends

The questions are:

How much did the company's retained earning increase?
I came up $2430

If $100 million shares outstanding and a stock price of $50, what was the dividend yield?

Please help, couldn't figure the second part out.

Quote:

---

A company earned $820 million and paid out 20% of their earnings in dividends

The questions are:

How much did the company's retained earning increase?
I came up $2430

---

? I'm not quite sure the trick to making retained earnings increase more than what they even earned. Earnings increases RE and dividends decrease it. You have how much it increased by, then figure out the dividends to get the amount it decreased by. That gives you the net increase.

Quote:

---

If $100 million shares outstanding and a stock price of $50, what was the dividend yield?

Please help, couldn't figure the second part out.

---

Dividend yield = dividends/price (per share)

You need first to get that amount that was paid in dividends.

Thank you