A stock's cash dividend divided by its current price is known as which of the following?
a.Coupon rate
b.Dividend yield
c.Capital gains yield
d.Yield to maturity
The dividend yield is computed by using the below mentioned formula:
= Dividend / share price
So, the correct answer is option b i.e. Dividend yield.
The coupon rate is computed by dividing the coupon payment by the par or face value of the bond.
Capital gain yield is computed as follows:
= (Price at end of period - Price at beginning of period) / Price at beginning of period
The YTM is computed as follows:
= [ Coupon payment + ((Face value - price) / time period) ] / [ ( Face value + price ) / 2 ]
So the correct answer is option b i.e. Dividend yield
Feel free to ask in case of any query relating to this question
A stock's cash dividend divided by its current price is known as which of the following?...
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The par value of a bond is less than its current price. Which
one of the following applies to this bond?
--the answer for #1 I got was $44.21 decrease & it was
incorrect.
The par value of a bond is less than its current price. Which
one of the following applies to this bond?
--- I put yeild to maturity is greater than the coupon rate
& that was incorrect
Question 1 6 pts A 4.25% coupon rate bond...
Dividend yield is: Select one: a. Next year’s expected dividend divided by market price of share b. Next year’s expected dividend divided by book value of share c. Next year’s expected dividend divided by Next year’s market price of share d. Current dividend divided by book value of share
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