The firm will pay an annual dividend this year of $2 per share.The current market price of the stock is $40.00 per share.The book value of this stock is $24.00 per share.The earnings per share for this firm is $5.75.What is the current dividend yield of this stock?

Question

Quizplus · Accepted Answer

The current dividend yield is calculated by dividing the annual dividend per share by the current market price per share. Thus, $2 / $40.00 = 0.05 or 5%.

The Firm Will Pay an Annual Dividend This Year of $2