A firm paid a dividend of $1.52 a share this year and had earnings per share of $5.42. Its market price per share is $69.10. What is its dividend yield?

Question

Quizplus · Accepted Answer

Dividend yield is calculated by dividing the dividend paid per share by the market price per share and expressing it as a percentage.

Dividend yield = (Dividend per share / Market price per share) x 100%

Dividend per share = $1.52

Market price per share = $69.10

Dividend yield = (1.52 / 69.10) x 100% ≈ 2.2%

Therefore, the correct answer is choice C.

A Firm Paid a Dividend of $1