Asked by
Jerald Carasig
on Dec 09, 2024Verified
You purchase 100 shares of stock at a price of $45 per share. One year later, the shares are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of each year. What is the dividend yield for the investment?
A) 4.4%
B) 5.5%
C) 8.5%
D) 8.9%
E) 9.7%.
Dividend Yield
A financial metric that compares a company's annual dividend payments to its stock price.
Shares
Units of ownership interest in a corporation or financial asset, providing a portion of the ownership to the shareholder.
- Familiarize with the concept of dividend yield and its calculation.
Verified Answer
IJ
Learning Objectives
- Familiarize with the concept of dividend yield and its calculation.