Question

On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per share. For the previous year, Zack paid an annual dividend of $3.90 per share. Zack's gross revenues and net income was $5,000,000 and $2,500,000, respectively. The dividend yield for Zack Corporation would be:_________a) 8%.b) 0.8%.c) 39%.d) None of these choices are correct.

Answer 1

Answer:

8%

Explanation:

Dividend yield is a measure of business performance, used by investors which compares dividend paid by a stock to its market share.

Given the above information,

Dividend yield = $3.90/$48 × 100 = 8.13%