QuestionWhat is the dividend yield on Stock $A$ that sells at $\$ 25 /$ share, when Company A pays a quarterly dividend of $\$ 0.20$ per share?
Dividend Yield = [?]\% Dividend Yield $=\frac{\text { Annual Dividend }}{\text { Share Price }}$

Studdy Solution
Use the formula for dividend yield to find the yield as a percentage.
The formula for dividend yield is given by: $\text{Dividend Yield} = \left( \frac{\text{Annual Dividend}}{\text{Share Price}} \right) \times 100$
Substituting the known values: $\text{Dividend Yield} = \left( \frac{0.80}{25} \right) \times 100$
Calculate the value: $\text{Dividend Yield} = 0.032 \times 100 = 3.2\%$
The dividend yield on Stock $A$ is $3.2\%$.