Question

Triad common stock is selling for $27.80 a share and has a dividend yield of 2.8 percent. what is the dividend amount?

Answer 1

Dividend yield is a quantifiable amount used by finance people to determine the amount of cash inflow based on investments made. In accounting, the dividend amount can be determined from the dividend yield through this equation:

Dividend yield = Divident amount/Price per share * 100
2.8% = Dividend amount/$27.8 * 100
Dividend amount = $0.7784 per share