A company that has 25,000 shares of $5.00 par value common stock issued and outstanding paid a dividend of $.75 per share. The market value of the stock is $20.00 per share. The company's dividend yield is:

Question

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividend per share by the market value per share. Here, the annual dividend per share is $0.75, and the market value per share is $20.00. So, the dividend yield is ($0.75 / $20.00) * 100% = 3.75%.

A Company That Has 25,000 Shares of $5