Question

Gwen owns 357 shares of common stock in a software company. The software company

recently paid a cash dividend of $3.75 per share.
If the current price of the stock is $14.75, what is the dividend yield of the stock?​

Answer 1

I’m pretty sure It’s the last one

Answer 2

Dividend Yield = 0.25423 or 25.423% rounded off to 25.42%

Step-by-step explanation:

The dividend yield is the return provided by a stock in form of dividend which is expressed as a percentage of the current market price. Thus, dividend yield can be calculated as follows,

Dividend Yield = Annual Dividend / Current Market Price

Dividend Yield for Gwen will be,

Dividend Yield = 3.75 / 14.75

Dividend Yield = 0.25423 or 25.423% rounded off to 25.42%