The dividend yield is computed as the annual dividend in year t + 1 divided by the:
A) Annual dividend in year t.
B) Market value in year t.
C) Market value in year t + 1.
D) Average value in year t.
E) Average value in year t + 1.

Question

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividend expected to be paid in year t + 1 by the market value of the stock in year t.

The Dividend Yield Is Computed as the Annual Dividend in Year