The following information pertains to Patterson Corporation.Assume that all balance sheet amounts represent both average and ending figures.

Patterson Corporation had 6,000 shares of common stock issued and outstanding.The market price of Patterson common stock on December 31,20x5,was $20.Patterson paid dividends of $0.90 per share during 20x5.
-What is the dividend yield of this corporation? Round your answer to two decimal places.
A)12.5 percent
B)18.75 percent
C)9.90 percent
D)6.25 percent

Question

The following information pertains to Patterson Corporation.Assume that all balance sheet amounts represent both average and ending figures.

Patterson Corporation had 6,000 shares of common stock issued and outstanding.The market price of Patterson common stock on December 31,20x5,was $20.Patterson paid dividends of $0.90 per share during 20x5.
-What is the dividend yield of this corporation? Round your answer to two decimal places.
A)12.5 percent 
B)18.75 percent 
C)9.90 percent 
D)6.25 percent

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividend per share by the current market price per share. In this case, the annual dividend per share is $1.50 and the current market price per share is $12.00. Therefore, the dividend yield is $1.50/$12.00 = 0.125, or 12.5%.

The Following Information Pertains to Patterson Corporation