If the quoted dividend yield in the paper was 2.2% and the dividend was listed as $0.72 what price is used in the calculation of dividend yield?
A) the day open of $32.15.
B) the day low of $32.
C) the day close of $32.75.
D) the day high of $33.50.

Question

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividend by the stock price and multiplying by 100. Therefore, if the dividend is listed as $0.72 and the dividend yield is 2.2%, we can set up the equation as follows:

0.022 = (0.72 / x) * 100

Solving for x (the stock price), we get:

x = 0.72 / (0.022/100) = $32.73

Since the question only offers answer choices rounded to the nearest dollar, the best choice is C, the day close of $32.75.

If the Quoted Dividend Yield in the Paper Was 2