Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share.The following information pertains to these shares: The total dividend on common stock for the year was $400,000.Cameron Corporation's dividend yield ratio for the year was:
A)20.00%
B)11.43%
C)9.41%
D)8.89%

Question

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share.The following information pertains to these shares:  The total dividend on common stock for the year was $400,000.Cameron Corporation's dividend yield ratio for the year was:
A)20.00% 
B)11.43% 
C)9.41% 
D)8.89%

Quizplus · Accepted Answer

Dividend yield ratio = Dividends per share ÷ Market price per share
= ($400,000 ÷ 50,000 shares)÷ $90 per share
= $8 per share ÷ $90 per share = 0.0889 (rounded)

Cameron Corporation Had 50,000 Shares of Common Stock Issued and Outstanding