Which of the following is the formula for computing the dividend yield?
A)(Net income - preferred dividends)/ number of shares of outstanding common stock
B)Market price per share of common stock / earnings per share
C)Total stockholders' equity / number of shares of outstanding common stock
D)Annual dividend per share of common stock / market price per share of common stock

Question

Quizplus · Accepted Answer

The formula for computing the dividend yield is the annual dividend per share of common stock divided by the market price per share of common stock. Option D is the only choice that represents this formula.

Which of the Following Is the Formula for Computing the Dividend