Peabody's stock has a market price of $86 per share with a dividend yield of 10 percent. Peabody pays dividends in equal amounts each quarter. The annual dividend payment is $8.60.

Question

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Dividend yield is calculated as annual dividend payment divided by stock price, therefore $8.60/$86 = 0.10 (or 10%). Since Peabody pays dividends quarterly, the dividend payment is $2.15 per quarter ($8.60/4).

Peabody's Stock Has a Market Price of $86 Per Share