You own 850 shares of Western Feed Mills stock valued at $53.15 per share. What is the dividend yield if your total annual dividend income is $1,256?
A) 2.67 percent
B) 2.78 percent
C) 1.83 percent
D) 2.13 percent
E) 2.54 percent

Question

Quizplus · Accepted Answer

Dividend Yield = (Annual Dividend Income / Total Value of Investment) x 100

Total Value of Investment = Number of shares x Value per share
Total Value of Investment = 850 x $53.15
Total Value of Investment = $45,197.50

Dividend Yield = ($1,256 / $45,197.50) x 100
Dividend Yield = 0.0278 x 100
Dividend Yield = 2.78%

Therefore, the answer is B.

You Own 850 Shares of Western Feed Mills Stock Valued