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

Question

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

Quizplus · Accepted Answer

Dividend Yield Ratio = (Dividend per share / Market price per share) x 100
Dividend per share = $2
Market price per share = $18
Dividend Yield Ratio = (2 / 18) x 100 = 11.1%

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