Edison Corporation paid a dividend of $10 per share on its $100 par preferred stock and $2 per share on its $10 par common stock. The market value of the common stock is $80 per share. Edison's dividend yield is:

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the annual dividend per share divided by the market price per share. For the common stock, the dividend yield is ($2 / $80) * 100% = 2.5%.

Edison Corporation Paid a Dividend of $10 Per Share on Its