what is the dividend yield on stock a that sells at $35/share, when company a pays a quarterly dividend of…

what is the dividend yield on stock a that sells at $35/share, when company a pays a quarterly dividend of $0.25 per share? dividend yield = ?% dividend yield = annual dividend / share price round to the nearest tenth of a percent.

what is the dividend yield on stock a that sells at $35/share, when company a pays a quarterly dividend of $0.25 per share? dividend yield = ?% dividend yield = annual dividend / share price round to the nearest tenth of a percent.

Answer

Explanation:

Step1: Calculate annual dividend

Since the quarterly dividend is $0.25, the annual dividend $D$ is $D = 0.25\times4=1$.

Step2: Calculate dividend - yield

The formula for dividend - yield $Y$ is $Y=\frac{D}{P}$, where $P = 35$ is the share price. Substitute $D = 1$ and $P = 35$ into the formula: $Y=\frac{1}{35}\approx0.02857$.

Step3: Convert to percentage and round

To convert to a percentage, multiply by 100: $Y = 0.02857\times100 = 2.857%$. Rounding to the nearest tenth of a percent gives $2.9%$.

Answer:

$2.9$