Question

A company reports basic earnings per share of $3.50, cash dividends per share of $0.75, and a market price per share of $64.75. The company's dividend yield equals:

Answer 1

Answer:

Dividend Yield ratio = 1.15 %

Explanation:

given data

basic earnings = $3.50 per share

cash dividends = $0.75 per share

market price = $64.75 per share

to find out

Dividend Yield ratio

solution

we get here Dividend Yield that is express as

Dividend Yield = Dividend paid ÷ Market value  .....................1

put here value we get

Dividend Yield = $\frac{0.75}{64.75}$

Dividend Yield = 0.01158

Dividend Yield ratio = 1.15 %