The common shares of the Hiboux Ltd have a book value of $21.60 and a market value of $28.60.The company pays $0.28 in dividends each quarter.What is the dividend yield?

Question

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividend by the market value of the share. In this case, the annual dividend is $0.28 x 4 = $1.12. The market value of the share is $28.60. Therefore, the dividend yield is $1.12 / $28.60 = 3.9%.

The Common Shares of the Hiboux Ltd Have a Book