Question

the following information is available for perry, inc. at the end of the year, the market price of its common stock is $550 per share. earnings per share totaled $100 and dividends per share in the amount of $15 were paid during the year. what is the dividend yield ratio?

Answer 1

The dividend yield ratio is a financial ratio that measures the annual dividends paid by a company per share of its common stock as a percentage of the market price per share.

Step-by-step explanation:

The dividend yield ratio is a financial ratio that measures the annual dividends paid by a company per share of its common stock as a percentage of the market price per share. To calculate the dividend yield ratio, divide the dividends per share by the market price per share and then multiply by 100. In this case, the dividend yield ratio would be:
Dividend Yield Ratio = (Dividends per Share / Market Price per Share) * 100

Given that the dividends per share are $15 and the market price per share is $550, the dividend yield ratio would be:

Dividend Yield Ratio = ($15 / $550) * 100 = 2.73%