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jenyasd209 [6]
3 years ago
11

A company reports basic earnings per share of $5.10, cash dividends per share of $2.05, and a market price per share of $65.55.

The company's dividend yield equals:
Business
2 answers:
Radda [10]3 years ago
6 0

Answer:

3.13%

Explanation:

The dividend yield refers to the payment by a company to its shareholders for their shareholding divided by current stock price of the company. This is usually expressed as a percentage and can be calculated for this question as follows:

Dividend yield = Dividends per share (DPS) ÷ Market price per share (MPS) = $2.05 ÷ $65.55 = 0.0313, or 3.13%.  

algol [13]3 years ago
3 0

Answer:

<u>The company's dividend yield equals: 3.13%</u>

Explanation:

Let's recall the formula of the dividend yield:

Dividend yield = Annual dividend/Current stock price

Replacing with the values provided, we have:

Dividend yield = 2.05/65.55

Dividend yield = 0.0313

<u>Dividend yield = 3.13%</u>

Interpretation:

Dividend yield is a way to compare the level of attractiveness of any dividend-paying stock. It shows an investor the yield he/she can expect on an annual basis by purchasing a stock.

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STatiana [176]

Answer:

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Explanation:

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