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Suppose you purchased a common stock for $12.50 per share some time ago. During the holding...

Suppose you purchased a common stock for $12.50 per share some time ago. During the holding period, you received a dividend of $1.50 per share. The stock is currently selling for $14. Calculate dividend yield.

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Answer #1

Dividend yield = Annual dividend / Stock's price

= $1.50 / $14

= 10.71%

Dividend yield = 10.71%

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