Question

In: Finance

You purchased a stock for $42.60 a share and sold it one year later for $44.30 a share.

You purchased a stock for $42.60 a share and sold it one year later for $44.30 a share. You received a total of $2.10 in dividends. What was your dividend yield on this investment?
A.4.74 percent B.4.77 percent C.4.84 percent D.4.89 percent E.4.93 percent
 

Solutions

Expert Solution

 

Dividend yield= annual dividend per share/ current market price per share.

= 2.10/44.30

= 4.74%

Answer: A. 4.74%


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