Question

You buy 50 shares of company stock at $99 per share. There is a $50 broker’s fee. The company pays an annual dividend of $1.50 per share. What is the annual yield?
a) 1.47%
b) 1.50%
c) 1.52%
d) 1.55%

Answer 1

Answer:

=1.52%

Explanation:

Dividend yield represents the dividends earned per share. It is calculated by dividing the annual dividend per share divided by the stock's price per share.

In this case,  the annual yield

=Dividend earned/  price per share x 100

=$1.50/99 x 100

=0.0151515 x 100

=1.5151

=1.52%