Phips Company paid total cash dividends of $200,000 on 25,000 outstanding common shares.On the most recent trading day,the common shares sold at $80.What is this company's dividend yield?

Question

Quizplus · Accepted Answer

Dividend yield = Dividends per share ÷ Market price per share
Dividend yield = ($200,000 ÷ 25,000 shares)÷ $80 per share = $8 per share ÷ $80 per share = 10%

Phips Company Paid Total Cash Dividends of $200,000 on 25,000