Question

On June 30, Setzer Corporation had a market price of $14 per share of common stock. For the previous year, Setzer paid an annual dividend of $0.98. Compute the dividend yield for Lucas Corporation. %

Answer 1

Dividend Yield = 7%

Step-by-step explanation:

The dividend yield is the proportion of the market price that is earned as dividend. The higher the dividend yield the better for the investor.

The dividend yield is calculated as follows:

Dividend yield = Dividend paid /market price per share × 100

= 0.98/14×100 =7 %

Dividend Yield = 7%