The ordinary shares of the Owl Company have a book value of $10.80 and a market value of $14.30. The company pays $0.14 in dividends each quarter. What is the dividend yield?

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the annual dividends per share divided by the market value per share. The annual dividend is $0.14 * 4 = $0.56. The dividend yield is $0.56 / $14.30 = 0.0392 or 3.9%.

The Ordinary Shares of the Owl Company Have a Book