Last year, Bartberger Corporation's dividend on common stock was $10.20 per share and the dividend on preferred stock was $3.60 per share. The market price of common stock at the end of the year was $51.70 per share. The dividend yield ratio is closest to:

Question

Quizplus · Accepted Answer

The dividend yield ratio is calculated by dividing the annual dividend per share by the market price per share. For Bartberger Corporation, it is $10.20 / $51.70 = 0.1973, which is closest to 0.20.

Last Year, Bartberger Corporation's Dividend on Common Stock Was $10