Compute the dividend yield for Sheldon Corporation

On March 11, 20Y6, Sheldon Corporation had a market price of $58 per share of common stock. For the previous year, Sheldon paid an annual dividend of $2.90 per share. Compute the dividend yield for Sheldon Corporation.

Solutions

Expert Solution

By dividing the yearly dividend per share by the market price per share and multiplying the result by 100 to represent it as a percentage, we can determine the dividend yield for Sheldon Corporation.

Dividend Yield = (Annual Dividend per Share / Market Price per Share) * 100

Given: Annual Dividend per Share = $2.90 Market Price per Share = $58

Dividend Yield = ($2.90 / $58) * 100

Dividend Yield = 0.05 * 100

Dividend Yield = 5%

Therefore, the dividend yield for Sheldon Corporation is 5%.

balaji rao answered 9 months ago

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