Question

A company reports basic earnings per share of $3.50, cash dividends per share of $1.25, and a market price per share of $64.75. The company's dividend yield equals:
a. 1.93%
b. 2.14%
c. 4.67%

Answer 1

Answer:

$1.93

Explanation:

The earnings per share is $3.50

Cash dividend per share is $1.25

Market price per share is $64.75

Therefore the company's dividend yield can be calculated as follows

= 1.25/64.75

= 0.0193 × 100

= $1.93

Hence the company's dividend yield is $1.93