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

Question

Arely Robinson

Business

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

+4

Answers (1)

Know the Answer?

Kailyn Montgomery · Answer 1

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%

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. Thedividend yield for the year isa. - 7.0 percentb. 4.5 percentC.-2.5 percent.d. 2.5 percent

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