A company that has 25,000 shares of $5.00 par value common stock issued and outstanding paid a dividend of $0.40 per share. The market value of the stock is $16 per share. The company's dividend yield is

Question

Quizplus · Accepted Answer

Dividend yield is calculated as the annual dividend per share divided by the current market value per share.

Annual dividend per share = $0.40
Market value per share = $16

Dividend yield = ($0.40/$16) x 100% = 2.5%

A Company That Has 25,000 Shares of $5