West Wind Power Company has a price of $40, a dividend of $2.00, and retained earnings of $5.00 per share. What is the dividend yield on this stock?
A) 5 percent
B) 7.5 percent
C) 12.5 percent
D) 17.5 percent

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the annual dividends per share divided by the price per share. So, for West Wind Power Company, the dividend yield is $2.00 / $40 = 0.05, or 5 percent.

West Wind Power Company Has a Price of $40, a Dividend