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18 April, 09:36

An investor buys a stock for $10,000 and earns dividends of $250 during the course of the year. At the end of the year, the stock is worth $9,300. The

dividend yield for the year is

a. - 7.0 percent

b. 4.5 percent

C.-2.5 percent.

d. 2.5 percent

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Answers (1)
  1. 18 April, 09:44
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    d. 2.5 percent

    Explanation:

    The dividend yield for any stock is determined by the formula:

    Dividend yield=Dividend paid/Price of the stock

    Dividend yield=250/10000

    Dividend yield=2.5%
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