A company paid $2.10 in dividends. Its earnings per share is $5.40, and its share price is $120 per share. The dividend yield equals 38.9%.

Name: A company paid $2.10 in dividends. Its earnings per share is $5.40, and its share price is $120 per share. The dividend yield equals 38.9%.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the annual dividends per share divided by the price per share. So, in this case, it would be $2.10 / $120 = 0.0175 or 1.75%, not 38.9%.

A Company Paid $2