If the interim dividend was 5c per ordinary share, the final dividend 7c per share and the market price per share on 30 June 2014 $3.20, the dividend yield is:
A) 3.75%.
B) 37.5%.
C) 26.7%.
D) 6%.

Question

Quizplus · Accepted Answer

The dividend yield is calculated by adding the interim dividend (5c) and the final dividend (7c) to get the total annual dividend (12c or $0.12), and then dividing this by the market price per share ($3.20). So, the dividend yield = ($0.12 / $3.20) * 100% = 3.75%.

If the Interim Dividend Was 5c Per Ordinary Share, the Final