Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500.The market price of common stock at the end of Year 2 was $2.01 per share. The company's dividend yield ratio for Year 2 is closest to:

Question

Symons Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $2,500.The market price of common stock at the end of Year 2 was $2.01 per share. The company's dividend yield ratio for Year 2 is closest to:

Quizplus · Accepted Answer

Dividend yield ratio = Dividends per share* ÷ Market price per share
= $0.05 ÷ $2.01 = 2.49% (rounded)
*Dividends per share = Common dividends ÷ Common shares (see above)
= $2,500 ÷ 50,000 shares = $0.05 per share (rounded)

Symons Corporation Has Provided the Following Financial Data