The common shares of the Owl Company have a book value of $10.80 and a market value of $14.30. The company pays $0.14 in dividends each quarter. What is the dividend yield?
A) 1.0%
B) 1.3%
C) 3.9%
D) 5.2%

Question

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividend by the market value of the stock. In this case, the annual dividend is $0.14 x 4 = $0.56. The market value of the stock is $14.30. Therefore, the dividend yield is $0.56 / $14.30 = 3.9%.

The Common Shares of the Owl Company Have a Book