The following information was available for the year ended December 31, 2019: $$\begin{array} { l r }
\text { Net income } & \$ 50,000 \
\text { Average total assets } & 600,000 \
\text { Dividends per share } & 1.40 \
\text { Earnings per share } & 5.00 \
\text { Market price per share at year-end } & 70.00
\end{array}$$ The dividend yield for 2019 was:
A)1.4%
B)2.0%
C)8.3%
D)28.0%

Question

The following information was available for the year ended December 31, 2019: $$\begin{array} { l r } 
\text { Net income } & \$ 50,000 \
\text { Average total assets } & 600,000 \
\text { Dividends per share } & 1.40 \
\text { Earnings per share } & 5.00 \
\text { Market price per share at year-end } & 70.00
\end{array}$$ The dividend yield for 2019 was:
A)1.4%
B)2.0%
C)8.3%
D)28.0%

Quizplus · Accepted Answer

The dividend yield is calculated as (Dividends per share / Market price per share) * 100 = (1.40 / 70.00) * 100 = 2.0%.

The Following Information Was Available for the Year Ended December