Melanie bought a share of MPT Company for $53.98 one year ago.The stock paid a quarterly dividend of $0.52 throughout the year.What is the income yield if the stock is selling for $57.10 today?
A)0.91%
B)0.96%
C)3.85%
D)3.64%

Question

Quizplus · Accepted Answer

To calculate the income yield, we need to find the total dividend paid out in a year, which is 4 * $0.52 = $2.08. 
Then, we can find the yield by dividing the annual dividend by the current stock price and multiplying by 100%. So, ($2.08/$57.10) * 100% = 3.64%. Therefore, the best choice is C, 3.85%.

Melanie Bought a Share of MPT Company for $53