Symons Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share.
-The company's dividend yield ratio for Year 2 is closest to:
A) 1.0%
B) 18.4%
C) 26.3%
D) 2.5%

Question

Symons Corporation has provided the following financial data:
   Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share.
-The company's dividend yield ratio for Year 2 is closest to:
A) 1.0% 
B) 18.4% 
C) 26.3% 
D) 2.5%

Quizplus · Accepted Answer

Dividend yield ratio = Dividends per share* ÷ Market price per share
= $0.05 ÷ $2.01 = 2.49% (rounded)
*Dividends per share = Common dividends ÷ Common shares (see above)
= $2,500 ÷ 50,000 shares = $0.05 per share (rounded)

Symons Corporation Has Provided the Following Financial Data