Question

DLM preferred stock has a 5.8 percent dividend yield. The stock is currently priced at $36.20 per share. What is the amount of the annual dividend?

-$2.35
-$1.90
-$2.10
-$2.30
-$2.40

Answer 1

Answer:

The correct option is c

Explanation: see the picture attached

Answer 2

Answer:

Annual dividend = $2.10

Explanation:

we know that : dividend yield = Annual dividend/ Current stock price

                   0.058 = Annual dividend / 36.20

                      0.058 * 36.20 = Annual dividend

                   Annual dividend =  2.10