A company reports basic earnings per share of $5.40, cash dividends per share of $2.20, and a market price per share of $65.70. The company's dividend yield equals: 8.07%. 3.35%. 12.39%. 3.21%. 3.11%.

A company reports basic earnings per share of $5.40, cash dividends per share of $2.20, and a market price per share of $65.70. The company's dividend yield equals: 8.07%. 3.35%. 12.39%. 3.21%. 3.11%.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

A company reports basic earnings per share of $5.40, cash dividends per share of $2.20, and a market price per share of $65.70. The company's dividend yield equals:

8.07%.

3.35%.

12.39%.

3.21%.

3.11%.

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