Asked by Kaparya White on May 15, 2024
Verified
Marcy owns common stock in Rex's Pet Planet.The annual dividend is $2.05.The current price is $5.37.What is the yield of the stock?
A) 31.7%
B) 33.2%
C) 38.2%
D) 53.7%
Annual Dividend
The total amount of dividend payments made to shareholders in a year, often expressed as a per-share amount.
Yield of The Stock
The income return on an investment, such as dividends received from holding a stock, expressed usually as a percentage of the stock's current market price.
- Assess stock market signals such as capital appreciation, dividend income, and yields to guide investment strategies.
Verified Answer
TY
Tarrell YanceyMay 21, 2024
Final Answer :
C
Explanation :
The yield of the stock is calculated by dividing the annual dividend by the current price and then multiplying by 100 to get a percentage. So, 2.055.37×100=38.2% \frac{2.05}{5.37} \times 100 = 38.2\% 5.372.05×100=38.2% .
Learning Objectives
- Assess stock market signals such as capital appreciation, dividend income, and yields to guide investment strategies.