Mount Adams Jazz Corporation has a price of $50,a dividend of $0.50,and retained earnings of $1.00 per share.What is the dividend yield on this stock?
A) 0.5 percent
B) 1 percent
C) 3.2 percent

Question

Quizplus · Accepted Answer

Dividend yield is calculated as dividend per share divided by the current market price per share.

Dividend Yield = (Annual Dividend per Share / Current Stock Price) x 100%

In this case, the annual dividend per share is $0.50, and the current stock price is $50. Therefore,

Dividend Yield = ($0.50 / $50) x 100%
Dividend Yield = 1%

So, the correct choice is B, with a dividend yield of 1%.

Mount Adams Jazz Corporation Has a Price of $50,a Dividend