The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow.

-Using the data provided for Diane Company, what is the dividend yield?
A) 7.5%
B) 0.75%
C) 13.3%
D) 1.3%

Question

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow.
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-Using the data provided for Diane Company, what is the dividend yield?
A) 7.5% 
B) 0.75% 
C) 13.3% 
D) 1.3%

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividend per share by the price per share. If the data provided indicates that the dividend yield is 7.5%, then option A is correct.

The Following Information Pertains to Diane Company