The market price of Horokhiv Corporation's common stock at the start of 2016 was $47.50 and it declared and paid cash dividends of $3.28 per share.The Dividend yield ratio is:
A)14.5%.
B)7.4%.
C)6.5%.
D)144.8%.
E)6.9%.

Question

Quizplus · Accepted Answer

The Dividend Yield Ratio is calculated by dividing the annual dividends per share by the market price per share. So, for Horokhiv Corporation, it would be $3.28 / $47.50 = 0.069, or 6.9%.

The Market Price of Horokhiv Corporation's Common Stock at the Start