Royal Co. receives a dividend of $4.88 per share. Today the closing price of the stock is $59.95. The current stock yield to the nearest tenth of a percent is:

Question

Quizplus · Accepted Answer

The stock yield is calculated by dividing the annual dividend by the current stock price and then multiplying by 100 to get a percentage.

Annual dividend = $4.88 per share

Current stock price = $59.95 per share

Stock yield = (4.88 / 59.95) x 100 = 8.13%

Rounding to one decimal place gives us a stock yield of 8.1%, which is the closest option to our calculation. Therefore, the answer is choice A) 8.1%.

Royal Co Receives a Dividend of $4