Financial information for Accessories Unlimited includes the following selected data: What is the company's dividend yield?
$$\begin{array} { | l r | }
\hline \text { Dividends (in millions) } & \$ 75 \
\hline \text { Shares outstanding (in millions) } & 300 \
\text { Stock price } & \$ 20.00 \
\hline
\end{array}$$

Question

Financial information for Accessories Unlimited includes the following selected data: What is the company's dividend yield?
$$\begin{array} { | l r | } 
\hline \text { Dividends (in millions) } & \$ 75 \
\hline \text { Shares outstanding (in millions) } & 300 \
\text { Stock price } & \$ 20.00 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The dividend yield is calculated by dividing the annual dividends per share by the price per share. First, find the annual dividends per share: $75 million / 300 million shares = $0.25 per share. Then, divide this by the stock price of $20.00: $0.25 / $20.00 = 0.0125, or 1.25%.

Financial Information for Accessories Unlimited Includes the Following Selected Data