Given the following data: Earnings per share = $5; Dividends per share = $3; Price per share = $50. calculate the dividend yield:
A) 10%
B) 5%
C) 60%
D) None of the above

Question

Quizplus · Accepted Answer

Dividend yield is calculated by dividing the annual dividend per share by the price per share. In this case, the annual dividend per share is $3 (since that is the dividend per share), and the price per share is $50. Therefore, the dividend yield is (3/50)*100, which is 6%. This is closest to option B, which is 5%. Therefore, B is the best choice.

Given the Following Data: Earnings Per Share = $5; Dividends