MusicPod's earnings per share ratios were $2.47 and $2.07 respectively for 2017 and 2016. MusicPod's stock was trading at $53.00 and $41.50 per share at the end of 2017 and 2016 respectively. The company paid cash dividends per share of $0.85 in 2017 and $0.63 in 2016. Total stockholders' equity was $13,572 million and $11,896 million in 2017 and 2016 respectively. The common shares outstanding were approximately 1,782,000 in both 2017 and 2016. MusicPod's dividend yield ratio for 2017 is closest to:

Question

Quizplus · Accepted Answer

Dividend yield ratio for 2017 can be calculated as:

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

Dividend per share = $0.85 
Market price per share = $53.00

Dividend Yield Ratio for 2017 = (0.85/53.00) x 100 = 1.6% (rounded to one decimal place)

Therefore, the closest answer is D) 1.6%.

MusicPod's Earnings Per Share Ratios Were $2