You purchased 200 shares at a price of £36.72 each.Over the last year, you have received total dividend income of £322.What is the dividend yield?
A)3.2%
B)4.4%
C)6.8%
D)9.2%
E)11.4%

Question

Quizplus · Accepted Answer

First, we need to find the total cost of the investment:

200 shares x £36.72 = £7,344

Next, we can use the formula for dividend yield:

Dividend Yield = (Total Dividend / Total Cost of Investment) x 100

Dividend Yield = (£322 / £7,344) x 100

Dividend Yield = 4.389%

Rounding to one decimal place, the dividend yield is 4.4%. Therefore, the best choice is B.

You Purchased 200 Shares at a Price of £36