Over-the-Rhine Cheese Corporation had a P/E ratio of 20,retained earnings of 1.70 dinars per share and a dividend of 0.80 dinars.What was its dividend yield?

Question

Quizplus · Accepted Answer

Dividend yield is calculated by dividing the dividend per share by the stock price per share. Since the stock price per share is not given, we cannot calculate the exact dividend yield. However, we know that the dividend per share is 0.80 dinars. To estimate the dividend yield, we can assume a stock price per share. For example, if the stock price per share is 50 dinars, the dividend yield would be (0.80/50) * 100 = 1.6%. Therefore, the best choice is B.

Over-The-Rhine Cheese Corporation Had a P/E Ratio of 20,retained Earnings