Rupert purchased 100 shares of Clarke Corporation for $28 a share last year.Clarke Corporation stock currently sells for $30 a share and pays $0.90 a share annually in cash dividends.What is the dividend yield on this stock?

Question

Quizplus · Accepted Answer

Dividend yield is calculated by dividing the annual cash dividend per share by the current market price per share and multiplying it by 100.

Dividend yield = (Annual cash dividend per share / Current market price per share) x 100

In this case, the annual cash dividend per share is $0.9, and the current market price per share is $30.

Dividend yield = ($0.9 / $30) x 100 = 3.0%

Therefore, the correct option is C, which is 3.0 percent.

Rupert Purchased 100 Shares of Clarke Corporation for $28 a Share