The preferred stock of North Coast Shoreline pays an annual dividend of $1.60 and sells for $20.65 a share.What is the dividend yield on this security?

Question

Quizplus · Accepted Answer

Dividend yield is calculated as follows:

Dividend yield = Annual dividend / Stock price

Plugging in the given values, we get:

Dividend yield = $1.60 / $20.65 = 0.0775 or 7.75%

Therefore, the answer is B) 7.75%.

The Preferred Stock of North Coast Shoreline Pays an Annual