Information concerning the common shares of Morris Company as of the end of the company's fiscal year is presented below:
The dividend yield ratio is closest to which of the following?
A) 11.1%.
B) 33.3%.
C) 50.0%.
D) 120.0%.

Question

Information concerning the common shares of Morris Company as of the end of the company's fiscal year is presented below: 
The dividend yield ratio is closest to which of the following?
A) 11.1%. 
B) 33.3%. 
C) 50.0%. 
D) 120.0%.

Quizplus · Accepted Answer

Dividend yield ratio = Annual dividends per share / Market price per share
Annual dividends per share = $2.80
Market price per share = $25.20
Dividend yield ratio = $2.80 / $25.20 = 0.1111 or 11.1% (rounded to one decimal place). Therefore, the closest answer is A) 11.1%.

Information Concerning the Common Shares of Morris Company as of the End