Question

RST stock has an annual dividend per share of $4.35 and a closing price per share of 39.50. What is the yield % for RST stock (to the nearest tenth of a percent)? Note: Yield% = (annual dividend per share) + (closing price per share).8.7%9.9%11.0%12.2%None of these choices are correct.

Answer 1

Step 1

Yield% = (annual dividend per share) / (closing price per share)

$\begin{gathered} Yield\text{ \%}=\frac{\text{annual dividend per share}}{\text{closing price per share}} \\ \\ Yield\text{ \%}=\frac{4.35}{39.50} \\ \\ Yield\text{ \%}=\text{ 0.11} \end{gathered}$