Question

The stock of Company X pays a dividend of $.88. The stock opened at $18.25 and closed at $18.33. The stock yield is A. 4.8% B. 4.2% C. 4.9% D. 4.1%

Answer 1

The answer is Letter A - 4.8%.

To get the stock yield use this formula - annual dividend / current stock price or share price
Substitute the dividend of $.88 and the closing price of $18.33 to the formula above. Divide and simplify.

Stock yield = .88 / 18.33
Stock yield = 0.0480... or 4.8%