Question

Last year, Shadow Corporation's dividend on common stock was $9.90 per share and the dividend on preferred stock was $1.00 per share. The market price of common stock at the end of the year was $68.10 per share. The dividend yield ratio is closest to

Answer 1

Dividend yield ratio = Dividend per share/Market price per share x 100

Dividend yield ratio = $9.90/$68.10 x 100

Dividend yield ratio = 14.54%

Step-by-step explanation:

Dividend yield ratio is the relationship between dividend per share and market price per share.