question 1 of 10: a stock is priced at $85 pe...
question 1 of 10: a stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. what is the dividend yield per stock share per year? a) 2.8% b) 3.5% c) 9.9% d) 11.3%
Answer
# Explanation:
## Step1: Calculate annual dividend
Since the quarterly dividend is $2.10, the annual dividend $D$ is $4\times2.10 = 8.4$.
## Step2: Calculate dividend - yield
The dividend - yield formula is $Y=\frac{D}{P}\times100\%$, where $P = 85$ is the stock price. Substitute $D = 8.4$ and $P = 85$ into the formula: $Y=\frac{8.4}{85}\times100\%\approx9.9\%$.
# Answer:
C. 9.9%