The assets of a mutual fund are $25 million. The liabilities are $4 million. If the fund has 700,000 shares outstanding and pays a $3 dividend, what is the dividend yield?

Name: The assets of a mutual fund are $25 million. The liabilities are $4 million. If the fund has 700,000 shares outstanding and pays a $3 dividend, what is the dividend yield?
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Question

Quizplus · Accepted Answer

Price per share = (25 million - 4 million)/700,000 = 30 per share
Dividend yield = 3/30 = 10%

The Assets of a Mutual Fund Are $25 Million