Which of the following is the correct formula for calculating dividend yield?
A) Dividend yield = Book value per share / Dividends per share
B) Dividend yield = Dividends per share / Book value per share
C) Dividend yield = Dividends per share / Market value per share
D) Dividend yield = Market value per share / Dividends per share

Question

Quizplus · Accepted Answer

Dividend yield is calculated as the annual dividend per share divided by the market price per share. This represents the return on investment for a shareholder based on the dividend payout. Therefore, the correct formula is Dividend yield = Dividends per share / Market value per share.

Which of the Following Is the Correct Formula for Calculating