A share of Oedipus Construction Company was selling for $32.16 one year ago.The stock paid an annual dividend of $0.25 during the year.What is the income yield (dividend yield)for shares of Oedipus Construction Company?
A)0.945%
B)0.578%
C)0.777%
D)0.546%

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the annual dividend per share divided by the stock price.

Annual dividend per share = $0.25 
Stock price one year ago = $32.16

Dividend yield = ($0.25 / $32.16) x 100% ≈ 0.777%

Therefore, the best choice is (C).

A Share of Oedipus Construction Company Was Selling for $32