The formula for computing the dividend yield is
A)annual dividend per share of common stock/market price per share of common stock.
B)market price per share of common stock/earnings per share.
C)total stockholders' equity/number of shares of outstanding common stock.
D)(net income - preferred dividends)/number of shares of outstanding common stock.

Question

Quizplus · Accepted Answer

Dividend yield is calculated by dividing the annual dividend per share of common stock by the market price per share of common stock. This formula helps investors assess how much income they would receive in the form of dividends relative to the price they paid for each share of stock.

The Formula for Computing the Dividend Yield Is