If the dividend of a stock is $20 and its dividend yield is $5,then the price of the stock is:

A) $2
B) $8
C) $4
D) $1
E) $3

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price, often used by investors to gauge the income a company's stock will generate.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually as cash or additional shares, as a reward for their investment in the company's equity.