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18 March, 03:19

A stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. What is the dividend yield per stock share per year?

a) 2.8%

b) 3.5%

c) 9.9%

d) 11.3%

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Answers (1)
  1. 18 March, 03:44
    0
    9.9 %

    Explanation:

    he formula for calculating dividend yield is as follows,

    Dividend yield = Annual dividend/stock price x 100

    For this case: Annual dividend = 4 ($ 2.1 per quarter)

    =$ 8.4

    Stock price: $85

    Dividend yield = $8.4/$85 x 100

    =9.88%

    =9.9 %
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