Question

An investor buys a stock for $10,000 and earns dividends of $250 during the course of the year. At the end of the year, the stock is worth $9,300. The

dividend yield for the year is

a. -7.0 percent

b.4.5 percent

C.-2.5 percent.

d. 2.5 percent

Answer 1

d. 2.5 percent

Step-by-step explanation:

The dividend yield for any stock is determined by the formula:

Dividend yield=Dividend paid/Price of the stock

Dividend yield=250/10000

Dividend yield=2.5%