Calculate P Co's dividend yield for 2012 and 2011 respectively.
A)3.5% and 3.6%
B)39.3% and 33.8%
C)1.3% and 1.3%
D)38.6% and 34.5%

Question

Quizplus · Accepted Answer

The dividend yield for a year is calculated by dividing the annual dividend per share by the current stock price and multiplying by 100. The problem does not provide information about the annual dividend or the stock price, so we cannot calculate the dividend yield. Therefore, we need to assume that the dividend and stock price remained the same in both years. Since the dividend yield is the same for both years, choice C) 1.3% and 1.3% is the most plausible answer.

Calculate P Co's Dividend Yield for 2012 and 2011 Respectively