Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year:

-What is Sudsy Soap's dividend yield?

Question

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year:
 
-What is Sudsy Soap's dividend yield?

Quizplus · Accepted Answer

Dividend yield is calculated by dividing the annual dividend by the current stock price. 
Here, Sudsy Soap's annual dividend per share is $0.50. 
Dividend Yield = (Annual Dividend per Share / Current Stock Price) * 100
= (0.50 / 35) * 100
= 1.4%
Therefore, choice A is the correct answer.

Toni and Felix Are Considering Buying Stock