Question

General MathematicsRicah owns common stock in AVG Corp. The annual dividend is ₱3.40. The current price is ₱67.40 per share. What is the yield of thw stock, rounded to the nearest tenth of a percent?

Answer 1

Step 1:

Market value of share = $67.40

Dividend attributed to each share = $3.40

Step 2:

The dividend yield formula is as follows:

Dividend Yield = Dividend per share / Market value per share

Where:

Dividend per share is the company’s total annual dividend payment, divided by the total number of shares outstanding

Market value per share is the current share price of the company

Step 3

`\begin{gathered} \text{Dividend yield = }(3.4)/(67.4)\text{ }*\text{ 100\%} \\ \text{= }(340)/(67.4) \\ =\text{ 5.0\%} \end{gathered}`