Information concerning the common shares of Morris Company as of the end of the company's fiscal year is presented below: $\begin{array} { l r }
\text { Number of Shares Outstanding } & 460,000 \
\text { Par Value per Share } & \$ 5.00 \
\text { Dividends Paid per Share } & \$ 6.00 \
\text { Market Price per Share } & \$ 54.00 \
\text { Earnings per Share } & \$ 18.00
\end{array}$ The dividend yield ratio is closest to which of the following?

Question

Information concerning the common shares of Morris Company as of the end of the company's fiscal year is presented below: $\begin{array} { l r } 
\text { Number of Shares Outstanding } & 460,000 \
\text { Par Value per Share } & \$ 5.00 \
\text { Dividends Paid per Share } & \$ 6.00 \
\text { Market Price per Share } & \$ 54.00 \
\text { Earnings per Share } & \$ 18.00
\end{array}$ The dividend yield ratio is closest to which of the following?

Quizplus · Accepted Answer

Dividend yield ratio is calculated by dividing dividends per share by market price per share and then multiplying by 100.
\begin{align*}
	ext{Dividend Yield Ratio} &= \frac{	ext{Dividends Paid per Share}}{	ext{Market Price per Share}} 	imes 100 \
&= \frac{\$6.00}{\$54.00} 	imes 100 \
&\approx 11.1 \%
\end{align*} Therefore, the dividend yield ratio is closest to 11.1%, which is option A.

Information Concerning the Common Shares of Morris Company as of the End