Question

Considering Sierra Slumber common stock currently selling at $38.007 with a last annual dividend of $1.26 per share, what is the dividend yield?

a. 3.32%
b. 2.85%
c. 4.12%
d. 3.20%

Answer 1

a. 3.32%. The dividend yield for Sierra Slumber common stock is 3.32%.

Step-by-step explanation:

The dividend yield is calculated by dividing the annual dividend per share by the current stock price, and expressing it as a percentage. In this case, the last annual dividend is $1.26 per share, and the current stock price is $38.007. Therefore, the dividend yield is calculated as:

Dividend Yield = (Annual Dividend / Stock Price) x 100%

Dividend Yield = ($1.26 / $38.007) x 100% = 3.32%

Therefore, the correct answer is 3.32% (option a).