Island Coffee Company reported the following for 2012:

What is the dividend yield for Island Coffee Company (to the nearest tenth of a percent)?

Question

Island Coffee Company reported the following for 2012:

What is the dividend yield for Island Coffee Company (to the nearest tenth of a percent)?

Quizplus · Accepted Answer

Dividend yield is calculated by dividing the annual dividend per share by the current stock price. From the information given, we can calculate the dividend per share as:
$0.75 + $1.50 + $1.50 = $3.75
Dividing by the current stock price of $37.50 gives us:
$3.75 / $37.50 = 0.1 or 10.0% (rounded to the nearest tenth) 
Therefore, the correct answer is B, 10.0%.

Island Coffee Company Reported the Following for 2012