question 1 of 10: a stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. what…

question 1 of 10: a stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. what is the dividend yield per stock share per year? a) 2.8% b) 3.5% c) 9.9% d) 11.3%

question 1 of 10: a stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. what is the dividend yield per stock share per year? a) 2.8% b) 3.5% c) 9.9% d) 11.3%

Answer

Explanation:

Step1: Calculate annual dividend

Since the quarterly dividend is $2.10, the annual dividend $D$ is $4\times2.10 = 8.4$.

Step2: Calculate dividend - yield

The dividend - yield formula is $Y=\frac{D}{P}\times100%$, where $P = 85$ is the stock price. Substitute $D = 8.4$ and $P = 85$ into the formula: $Y=\frac{8.4}{85}\times100%\approx9.9%$.

Answer:

C. 9.9%