Asked by
Dwayne Teamer
on Dec 16, 2024Verified
Edison Corporation paid a dividend of $10 per share on its $100 par preferred stock and $4 per share on its $20 par common stock. The market value of the common stock is $80 per share. Edison's dividend yield is
A) 5%
B) 10%
C) 25%
D) 20%
Dividend Yield
A metric indicating the proportion of a company's annual dividends in relation to its share price.
Par Preferred Stock
Preferred stock with a nominal value assigned in the corporate charter, which determines the issue price and face value for dividend calculations.
Par Common Stock
The nominal or face value assigned to a share of common stock, as stated in the corporate charter.
- Ascertain and expound on the role of dividend yield within investment analysis.
Verified Answer
JS
Learning Objectives
- Ascertain and expound on the role of dividend yield within investment analysis.