Main Street Company paid out $2.30 in dividends per share of common stock and had earnings per share of $5.00 during 2016. The market price of the stock on December 31, 2016 was $21.00 per share. There were 15,000 shares of stock outstanding for the entire year. The dividend yield as of December 31, 2016 is closest to:

Question

Quizplus · Accepted Answer

Dividend Yield = (Dividends per share / Market price per share) x 100

Dividend per share = $2.30
Market price per share = $21.00

Dividend Yield = ($2.30 / $21.00) x 100 = 10.95%

Main Street Company Paid Out $2