Question

Saunders and Flimsy Partnership paid dividends of $0.27 and $0.15 per share last year. If yesterday's closing price was $12.27, what is the current yield on the stock

Answer 1

the current yield on the stock is 3.42%

Step-by-step explanation:

the computation of the current yield on the stock is shown below:

Current yield = Annual dividends paid ÷ Current market closing price

= ($0.27 + $0.15) ÷ $12.27

= $0.42 ÷ $12.27

= 3.42%

hence, the current yield on the stock is 3.42%

we simply applied the above formula to determine the current yield on the stock